INCOME TAX ASSESSMENT ACT 1997 - SECT 36.10 How to calculate a tax loss for an income year
INCOME TAX ASSESSMENT ACT 1997 - SECT 36.10
How to calculate a tax loss for an income year(1) Add up the amounts you can deduct for an income year (except * tax losses for earlier income years).
(2) Subtract your total assessable income.
(3) If you * derived * exempt income, also subtract your * net exempt income (worked out under section 36 - 20).
(4) Any amount remaining is your tax loss for the income year, which is called a loss year .
Note 1: Some deductions are limited so that they cannot contribute to a tax loss. See section 26 - 55 (Limit on certain deductions).
Note 2: The meanings of tax loss and loss year are modified by section 36 - 55 for a corporate tax entity that has an amount of excess franking offsets.
(5) For subsection (3), if you have * exempt income under
section 51 - 100 (about shipping), disregard 90% of so much of your *
net exempt income as directly relates to that exempt income.