Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p40
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 40/40)
Character Range: 1919976–1921130

a *consolidated group or a *MEC group.
 (2) The time of the event is just after the entity becomes a *subsidiary member of the group.
 (3) For the head company core purposes mentioned in subsection 701‑1(2), the *head company makes a capital loss equal to the reduction.
 (4) The amount of the capital loss that can be applied to reduce the head company's *capital gains for the first income year ending after the entity becomes a *subsidiary member of the group (the first income year) cannot exceed 1/5 of the *capital loss.
 (5) The amount of the *net capital loss from the first income year, to the extent the amount is attributable to the *capital loss (the extent being the event L1 attributable loss), that can be applied to reduce the head company's *capital gains for a later income year cannot exceed the amount worked out for the year using the following table:

Limit on applying event L1 attributable loss
Item                                           For this income year:                                                                                        The amount of the event L1 attributable loss that can be applied cannot exceed: