In: Accounting
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 |
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.