Working out the company's net capital gain

Step 1.   Add up the * notional net capital gains (if any) worked out under section   165 - 108.

  Note:   A notional net capital loss for a period is not taken into account, but counts towards the company's net capital loss for the income year.

Step 2.   Add to the Step 1 amount so much of each amount included in the company's assessable income for the income year under:

  (a)   section   97 (Beneficiary of a trust estate who is not under a legal disability) of the Income Tax Assessment Act 1936 ; or

  (b)   section   98A (Non - resident beneficiaries assessable in respect of certain income) of that Act;

  as is attributable to a * capital gain that the trust made outside the income year.

  Note:   This is relevant only if the trust has an income year that starts and ends at a different time from when the company's income year starts and ends.

Step 3.   If the Step 2 amount is more than zero, reduce it by applying any unapplied * net capital losses from previous income years. (If this reduces it to zero, the company has no net capital gain for the income year.)

  Note:   To apply net capital losses: see section   102 - 15.

Step 4.   If the Step 3 amount is more than zero, it is the company's net capital gain .