36‑10 How to calculate a tax loss for an36‑10 How to calculate a tax loss for an income year

#### 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.