Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_5:p4
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 4/4)
Character Range: 39949–40924

loss parcel to $10,000 by not converting $3,000 of its convertible foreign losses (which consists of $2,000 of the 2004 tax loss and $1,000 of the 2005 tax loss). Consequently, only the 2005 and 2007 income years are the new loss years for Loss Co.

770‑25  Tax loss has foreign loss component

  A tax loss an entity is taken to have under section 770‑1 has a separate component (the foreign loss component). The amount of the component is the amount of the convertible foreign loss.

770‑30  Deduction limit for foreign loss component

 (1) The amount of the foreign loss component of one or more tax losses in a loss parcel that any entity can deduct in an income year cannot exceed the amount worked out for the year using the table.

Limit on deducting foreign loss component of a tax loss
Item                                                     For this income year:                                      The amount of the component that you can deduct cannot exceed: