Table of Subdivisions
375-G Film losses
[The next Subdivision is Subdivision 375-G.]
375-800 What this Subdivision is about
A tax loss may have a film component if you incurred film deductions in the loss year. If so, the film component is regarded as a separate tax loss. You can deduct the film loss from your film income only.
Table of sections
Operative provisions
375-805 Does your tax loss have a film component?
375-810 What is a film loss?
375-815 Deductibility of film losses
375-820 Order in which tax losses are to be deducted
375-805 Does your tax loss have a film component?
(1) A *tax loss in an income year has a film component if:
exceed the sum of:
The amount of the film component is the excess or the tax loss, whichever is less.
(2) Your film deductions for an income year are the following:
(a) amounts you can deduct for the income year under sections 124ZAF and 124ZAFA of the Income Tax Assessment Act 1936;
(b) amounts that you can deduct for the income year and to which section 124ZAO of the Income Tax Assessment Act 1936 applies in relation to you for the income year.
(3) Your assessable film income for an income year is so much of the amount, or the sum of the amounts, to which section 26AG of the Income Tax Assessment Act 1936 applies in relation to you for the year of income as is assessable income.
(4) Your net exempt film income for an income year is your *exempt film income for that year reduced by:
(a) any taxes payable in respect of that income in a country or place outside Australia; and
(b) any expenses (not of a capital nature) so far as you incurred them during that year in deriving that income.
(5) Your exempt film income for an income year is so much of the amount, or the sum of the amounts, to which section 26AG of the Income Tax Assessment Act 1936 applies in relation to you for the year of income as is exempt income.
If a *tax loss has a *film component, it is treated as 2 separate *tax losses: one (the film loss) consisting of the film component and the other consisting of the rest (if any).
375-815 Deductibility of film losses
(1) You can deduct a *film loss only from your *net exempt film income or your *net assessable film income.
(2) Your net assessable film income for an income year is your *assessable film income for that year reduced by your *film deductions for that year.
(3) This section applies in addition to the other rules about how *tax losses are applied.
375-820 Order in which tax losses are to be deducted
If, for an income year, you have *net exempt film income, *net assessable film income, or both, you deduct your *film losses (in the order in which you incurred them) before any other *tax losses of the same or any other *loss year.
[The next Division is Division 750.]