36‑15 How to deduct tax losses of entiti36‑15 How to deduct tax losses of entities other than corporate tax entities

#### 36‑15 How to deduct tax losses of entities other than corporate tax entities (1) Your \*tax loss for a \*loss year is deducted in a later income year as follows if you are not a \*corporate tax entity at any time during the later income year. > Note 1: See section 36‑17 for the deduction of a tax loss of an entity that is a corporate tax entity at any time during the later income year. > Note 2: A tax loss can be deducted only to the extent that it has not already been utilised: see subsection 960‑20(1). If you have no net exempt income (2) If your total assessable income for the later income year exceeds your total deductions (other than \*tax losses), you deduct the tax loss from that excess. If you have net exempt income (3) If you have \*net exempt income for the later income year and your total assessable income (if any) for the later income year exceeds your total deductions (except \*tax losses), you deduct the tax loss: (a) first, from your net exempt income; and (b) secondly, from the part of your total assessable income that exceeds those deductions. (4) However, if you have \*net exempt income for the later income year and those deductions exceed your total assessable income, then: (a) subtract that excess from your net exempt income; and (b) deduct the tax loss from any net exempt income that remains. To work out your net exempt income: see section 36‑20. General (5) If you have 2 or more \*tax losses, you deduct them in the order in which you incurred them.