Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 11/53)
Character Range: 2941354–2944039

has an income year that starts and ends at a different time from when the company's income year starts and ends.
 (2) So much of the partnership's net income or partnership loss of an income year as was *derived during the period is a notional net income or notional loss of the partnership for the period. (For the purposes of this subsection, the partnership's net income or partnership loss is calculated without taking account of the partnership's *full year deductions for that income year.)
Note: The partnership's full year deductions are dealt with in section 165‑90.
 (3) The company's share is calculated by dividing:
• the company's interest in the partnership's net income or partnership loss of that income year;
by
• the amount of that net income or partnership loss;
and expressing the result as a percentage.

165‑90  Company's full year deductions include a share of partnership's full year deductions
 (1) This section applies if at any time during the income year the company is a partner in a partnership that has one or more *full year deductions for the income year of the partnership that corresponds to the income year of the company.
 (2) The partnership's *full year deductions are treated as full year deductions of the company, but only to the extent of the *company's share.
 (3) If the partnership's income year is the same as the company's, the company's share is calculated by dividing:
• the company's interest in the partnership's net income or partnership loss of the income year;
by
• the amount of that net income or partnership loss;
and expressing the result as a percentage.
 (4) However, if the partnership had neither a net income nor a partnership loss, the company's share is a percentage that is fair and reasonable having regard to the extent of the company's interest in the partnership.
 (5) If the partnership's income year does not start and end at the same time as the company's income year, the company's share is a percentage that is fair and reasonable having regard to all relevant circumstances.

Subdivision 165‑CA—Applying net capital losses of earlier income years

Guide to Subdivision 165‑CA

165‑93  What this Subdivision is about

      In working out its net capital gain for an income year, a company cannot apply a net capital loss for an earlier income year unless:
             (a) it has the same owners and the same control from the start of the loss year to the end of the income year; or
             (b) it satisfies the business continuity test by carrying on the same business (including entering into no new kinds of transactions and conducting no new kinds of business), or by carrying on a similar business