(1) The company calculates its taxable income for the income year in this way:
(2) As well as a taxable income, the company will have a tax loss. It is the total of:
• each notional loss; and
• excess full year deductions of particular kinds.
(3) Special rules apply if the company was in partnership at some time during the income year.
For the special rules that apply if the company was in partnership: see sections 165-75 to 165-90.