For the year ended 30 June, Restaurants Pty Ltd had a tax loss of $70,000.

For the year ended 30 June, Restaurants Pty Ltd had a tax loss of $70,000. Its assessable income totalled $100,000 and its deductions totalled $170,000. Included in the assessable income was a partly franked dividend of $20,000 made up of $17,000 received and a franking credit of $3,000.

What is Restaurants Pty Ltd carried forward tax loss?

		Nil as companies cannot carry forward losses
		$73,000
		$87,000
		$70,000
		$80,000

Solutions

Expert Solution

Carry forward tax loss = tax loss + franking credit

=70,000 + 3,000 = $ 73,000

The tax loss carried forward is limited to 80% of the total income = 80% of $ 100,000 = $ 80,000

Since $ 73,000 is below limit, the entire loss of $ 73,000 can be carried forward.

ekkarill92 answered 2 years ago

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