Document ID: chunk:federal_register_of_legislation:F2024L01212:reg:7:p2
Version: federal_register_of_legislation:F2024L01212
Segment Type: reg
Provision Reference: reg 7 (pt 2/2)
Character Range: 6850–8218

that can be made under section 1208A or 1208B of the Social Security Act from the company's or trust's gross ordinary income from the farm enterprise or related business; and
                (c) if the farm enterprise or related business is carried on by an entity other than a trust or company—the outgoings of the farm enterprise or related business are the reductions that can be made under Division 1A of Part 3.10 of the Social Security Act from the entity's gross ordinary income from the farm enterprise or related business; and
                (d) assume that the company's, trust's or entity's gross ordinary income from the farm enterprise or related business for the tax year exceeded the reductions; and
                (e) if the farm enterprise or related business is carried on by a partnership—treat the partnership as a person for the purpose of applying paragraphs (c) and (d).

           Step 5. Sum the amounts worked out under step 4.
           Step 6. Subtract the amount worked out under step 5 from the amount worked out under step 3.
           Step 7. If the amount worked out at step 6 is zero or more, there is no overall operating loss for the tax year.
           Step 8. If the amount worked out at step 6 is a negative amount, the amount (ignoring that the amount is a negative number) is the overall operating loss for the tax year.