INCOME TAX ASSESSMENT ACT 1997 - SECT 320.120 Capital losses from assets other than complying superannuation assets or segregated exempt assets

INCOME TAX ASSESSMENT ACT 1997 - SECT 320.120

  (1)   This section applies to assets ( ordinary assets ) of a * life insurance company other than:

  (a)   * complying superannuation assets; or

  (b)   * segregated exempt assets.

  (2)   In working out a * life insurance company's * net capital gain or * net capital loss for the income year, * capital losses from ordinary assets can be used only to reduce * capital gains from ordinary assets.

  (3)   If some or all of a * capital loss from an ordinary asset cannot be applied in an income year, the unapplied amount can be applied in the next income year in which the company's * capital gains from ordinary assets exceed the company's capital losses (if any) from ordinary assets.

  (4)   If the company has 2 or more unapplied * net capital losses from ordinary assets, the company must apply them in the order in which they were made.

Note:   This section affects the amount of assessable income that is to be taken into account in working out a taxable income or tax loss of the ordinary class: see sections   320 - 139 and 320 - 143.