Treatment of loss

       For individual: a tax loss can be offset against assessable income in the current year or carried forward and offset against income of future years (s BC(4), IA2(2), IA3(4)).

       For partnership: a tax loss is ‘distributed’ to each partner according to shareholding. The loss can be carried forward to next year and offset against the partner’s assessable income.

       For a trust: loss incurred by a trust are carried forward and offset against trustee income of future years (s IA3(4)).

       For a look through company: a tax loss can offset against shareholders’ income within LTC. It can be carried forward and offset against future income the LTC allocates to the particular shareholder.