Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:1_11:p9
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 9/16)
Character Range: 30654–33320

income year;
 (iii) if the relevant asset entity is a partnership—the relevant asset entity's net income, or partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936), for the income year;
 (b) next, work out a reasonable estimate of whichever of the following is applicable:
 (i) if the relevant operating entity is a trust that is not an AMIT—the operating asset entity's net income, or tax loss, for the income year;
 (ii) if the relevant operating entity is a partnership—the relevant operating entity's net income, or partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936), for the income year;
 (iii) otherwise—the relevant operating entity's taxable income or tax loss for the income year;
 (c) next, add the results of paragraphs (a) and (b);
 (d) next, multiply the result of paragraph (c) by 0.8;
 (e) next, subtract the result of paragraph (a) from the result of paragraph (d);
 (f) next, add the amount of *excepted MIT CSA income mentioned in subsection 12‑441(1) to the result of paragraph (e).
If the result of paragraph (f) is a positive number, the concessional cross staple rent cap is that result. Otherwise, the concessional cross staple rent cap is nil.
 (3) For the purposes of paragraphs (2)(a) and (b):
 (a) treat the amount of a *tax loss, or of a partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936), as a negative number; and
 (b) disregard any *tax loss for a previous income year of the relevant asset entity or relevant operating entity.

12‑445  Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income
 (1) This section applies if:
 (a) an entity is an *asset entity in relation to an income year and is a *stapled entity in relation to a *cross staple arrangement; and
 (b) the entity is entitled to a deduction for the income year against its assessable income that arises from *rent from land investment that it derives or receives in the income year; and
 (c) the entity derives, receives or makes an amount of *excepted MIT CSA income in the income year (disregarding this section and subsection 12‑441(2)); and
 (d) the amount of that excepted MIT CSA income exceeds the entity's *concessional cross staple rent cap for the income year.
 (2) The amount of the deduction can only be deducted against an amount of assessable income of the *asset entity as follows:
 (a) first, the amount can only be deducted against an amount of assessable income that is *excepted MIT CSA income, to the extent that the excepted MIT CSA income does not exceed the entity's *concessional