Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p28
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 28/79)
Character Range: 2275261–2277839

at a later stage of the process of calculating the trust's net income for the income year.

268‑45  How to calculate the trust's net income for the income year
 (1) The trust's net income for the income year is worked out as follows.
 (2) Add up the notional net incomes (if any) worked out under section 268‑30 or 268‑70.
Note: A notional loss for a period is not taken into account, but counts towards the trust's tax loss for the income year.
 (3) Add the full year amounts referred to in subsection 268‑40(7) (if any).
 (4) Subtract the trust's full‑year deductions of these kinds:
 (a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;
 (b) deductions for bad debts under section 25‑35 (about bad debts) of the Income Tax Assessment Act 1997;
 (c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
unless they exceed the total of the notional net incomes and the full year amounts. (If they equal or exceed that total, the trust does not have a net income for the income year.)
 (5) If an amount remains, subtract from it the trust's other full year deductions, in the order shown in subsection 268‑35(5), unless they exceed the amount remaining. (If they equal or exceed that amount, the trust does not have a net income for the income year.)
 (6) The amount (if any) remaining is the trust's net income for the income year.

268‑60  How to work out the trust's section 36‑10 tax loss for the income year
 (1) For the purposes of Division 36 (Tax losses of earlier income years) of the Income Tax Assessment Act 1997, instead of working out the trust's tax loss for the year under section 36‑10 of that Act, it is worked out as follows.
 (2) Total the notional losses.
 (3) Add the amount (if any) by which the trust's full year deductions of these kinds:
 (a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;
 (b) deductions for bad debts under section 25‑35 ( about bad debts) of the Income Tax Assessment Act 1997;
 (c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
exceed the total