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INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS    View history reference

Division 268 - How to work out a trust ' s net income and tax loss for the income year    View history reference

Subdivision 268-C - Other steps in working out the net income and tax loss  

SECTION 268-45  HOW TO CALCULATE THE TRUST ' S NET INCOME FOR THE INCOME YEAR  

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268-45(1)  

The trust ' s net income for the income year is worked out as follows.

268-45(2)  

Add up the notional net incomes (if any) worked out under section 268-30 or 268-70.

Note:

A notional loss for a period is not taken into account, but counts towards the trust ' s tax loss for the income year.

268-45(3)  

Add the full year amounts referred to in subsection 268-40 (7) (if any).

268-45(4)  

Subtract the trust ' s full-year deductions of these kinds:


(a) deductions for bad debts under section 8-1 (about general deductions) of the Income Tax Assessment Act 1997 ;
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(b) deductions for bad debts under section 25-35 (about bad debts) of the Income Tax Assessment Act 1997 ;
 View history reference


(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;
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unless they exceed the total of the notional net incomes and the full year amounts. (If they equal or exceed that total, the trust does not have a net income for the income year.)

268-45(5)  

If an amount remains, subtract from it the trust ' s other full year deductions, in the order shown in subsection 268-35 (5), unless they exceed the amount remaining. (If they equal or exceed that amount, the trust does not have a net income for the income year.)

268-45(6)  

The amount (if any) remaining is the trust ' s net income for the income year.

Archived:

S 268-50 and 268-55 repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 196, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .


 



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