Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a * limited partner in a * foreign hybrid in relation to an income year if the sum of the following amounts:
(a) any amount (a foreign hybrid revenue loss amount ) allowable to the partner as a deduction under subsection 92(2) of the Income Tax Assessment Act 1936 in respect of a * partnership loss of the foreign hybrid for the income year;
(b) any * foreign hybrid net capital loss amount of the partner in respect of the foreign hybrid for the income year;
exceeds the partner's * loss exposure amount for the income year.
Reduction in foreign hybrid revenue loss amount or foreign hybrid net capital loss amount
(2) If this section applies, the amount mentioned in paragraph (1)(a) or (b), or each of the amounts mentioned in those paragraphs, is reduced so that in total they equal the partner's * loss exposure amount. The partner must choose how much of the reduction is applied to each of the amounts.
Effect of reducing foreign hybrid net capital loss amount
(3) If the partner's * foreign hybrid net capital loss
amount in respect of the * foreign hybrid for the income year is reduced under
subsection (2), the partner's * net capital gain or *
net capital loss for the income year is worked out by assuming that the *
capital gains and * capital losses taken into account in working out the
partner's foreign hybrid net capital loss amount were instead a capital
loss equal to the foreign hybrid net capital loss amount after the reduction.