Chapter 17 Illustration 1

Hi Jill,

I am looking at the illustration 1 for Tax adjusted losses and was hoping you could clear something up.

In the illustration it shows ALL of the trading loss has been carried forward into the next FY and i offset against total profits, and not offset in the current year first. I thought that any loss had to be offset in the current year against total profits before being carried back or forwards?

Losses is definitely one of the trickier topics!
Thanks,
Jordan