Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p26
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 26/79)
Character Range: 2270249–2272932

during which the trust was in partnership, the notional loss is worked out under Subdivision 268‑D.
 (3) On the other hand, if that assessable income exceeds those deductions, the trust has a notional net income for the period, equal to the excess.
For a period during which the trust was in partnership, the notional net income is worked out under Subdivision 268‑D.
 (4) If the trust has a notional loss for none of the periods in the income year, this Subdivision has no further application, and the trust's net income for the income year is calculated in the usual way.
The usual way of working out net income is set out in section 95.

268‑35  How to attribute deductions to periods
 (1) The trust's deductions for the income year are attributed to periods in the income year as follows.
 (2) The following deductions are attributed to each period in proportion to the length of the period:
 (aa) deductions for the decline in value of a depreciating asset;
See Division 40 of the Income Tax Assessment Act 1997.
 (c) deductions for expenditure, deductions for which are spread over 2 or more years, but not full year deductions (see subsection (5));
 (d) deductions for expenditure of capital monies in connection with an Australian film.
See former section 124ZAFA.
 (3) All other deductions (except full year deductions) are attributed to periods as if each period were an income year.
 (4) Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the trust's net income for the income year.
 (5) These are full year deductions:
 (a) deductions for bad debts under section 8‑1 (about general deductions) of the Income Tax Assessment Act 1997;
 (b) deductions for bad debts under section 25‑35 (about bad debts) of the Income Tax Assessment Act 1997, or for losses on debt/equity swaps under section 63E;
 (c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997, because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
 (d) deductions allowable under Division 30 of the Income Tax Assessment Act 1997;
 (e) deductions for payments of pensions, gratuities or retiring allowances under section 25‑50 of the Income Tax Assessment Act 1997;
 (f) deductions for tax losses of earlier income years;
See Division 36 of the Income Tax Assessment Act 1997.
 (j) deductions for farm management deposits.
Note: See Division 393 of the Income Tax Assessment Act 1997.
 (6) However, a deduction for the balance of capital expenditure is not a