Show at label U the undeducted amount of tax losses incurred by the trust that can be carried forward to the later income year under section 36-15 of the ITAA 1997.
Do not include any net capital losses to be carried forward to later income years at label U - show them separately at label V Net capital losses carried forward to later income years and in the CGT schedule, if a schedule is required.
Net exempt income reduces a current year tax loss. If there is any excess exempt income, then prior year tax losses will be reduced. Tax losses carried forward may be affected by the commercial debt forgiveness provisions - refer to Appendix 4 in the ATO Trust return instructions.
If the income injection test in Division 270 of Schedule 2F to ITAA 1936 prevents the trust from fully claiming a deduction in the current income year, include the amount shown at label U. Include the full amount of the 'scheme assessable income' within the meaning of Division 270 in the amount of total net income of the trust shown at item 26 Total net income or loss.
If the trust is required to complete a losses schedule, the amount of the tax losses shown at label U in part A of that schedule must be the same as the amount shown at label U on the trust tax return.
