Document ID: chunk:federal_register_of_legislation:F2024L01212:reg:8
Version: federal_register_of_legislation:F2024L01212
Segment Type: reg
Provision Reference: reg 8
Character Range: 8220–9821

8  Limits on using the overall operating loss to reduce ordinary income
 (1) The amount of the overall operating loss that can be used to reduce the ordinary income of a person, and the person's partner (if any), for a tax year must not exceed the least of the following:
 (a) the overall operating loss;
 (b) the person's share of the overall operating loss, if an adjustment under subsection (4) was made in relation to the overall operating loss;
 (c) $100,000.
 (2) Neither a person's, nor the person's partner's, ordinary income for a tax year may be reduced below zero.
 (3) An amount of the overall operating loss that is used by a person, and the person's partner (if any), for a tax year must not be used by another person to reduce that person's ordinary income for the tax year.
 (4) If:
 (a) a person (the first person) and another person (other than the partner of the first person) would be entitled to use the overall operating loss to reduce their ordinary income for a tax year because each of those persons qualifies for farm household allowance in relation to the same farm enterprise; and
 (b) those persons have notified the Secretary that they wish to use the overall operating loss, or part of that loss, to reduce their ordinary income for the tax year;
the overall operating loss must be adjusted, as agreed between those persons, to reflect each of those persons' share of the overall operating loss.
 (5) If the overall operating loss has been adjusted under subsection (4), each person may use only their share of the overall operating loss.

Part 3—Activity supplement