Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_10:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 4/7)
Character Range: 172295–174994

in your assessable income for any income year because of a balancing adjustment for the asset; and

 (b) any amount that would have been so included apart from any of these (which provide relief from including a balancing charge in your assessable income):

 (i) section 42‑285 or 42‑290; or

 (ii) subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936.

What does not form part of the reduced cost base

 (4) The reduced cost base does not include an amount to the extent that you have deducted or can deduct it (including because of a balancing adjustment) or could have deducted apart from paragraph 43‑70(2)(h).

Note: That paragraph excludes from deductibility under Division 43 expenditure that qualifies for the heritage conservation rebate.

 (5) The reduced cost base does not include an amount that is taken into account under paragraph 42‑175(b).

Note: That paragraph covers reductions in the undeducted cost of plant.

 (6) Expenditure does not form part of the reduced cost base to the extent of any amounts you have received as *recoupment of it. However, this rule does not apply to the extent that the amounts are included in your assessable income.

 (7) If your *CGT asset is a *share in a company, its reduced cost base is reduced by the amount calculated under subsection (8) if:

 (a) the company makes a distribution to you under an *arrangement; and

 (b) an amount (the attributable amount) representing the distribution or part of it is reasonably attributable to profits derived by the company before you *acquired the share; and

 (c) you are entitled to a rebate of income tax under section 46 or 46A of the Income Tax Assessment Act 1936 (the dividend rebate) on the part of the distribution that is a *dividend (the dividend amount); and

 (d) you were a *controller (for CGT purposes) of the company, or an *associate of such a controller, when the arrangement was made or carried out.

 (8) The amount of the reduction is:

110‑60  Reduced cost base for partnership assets

 (1) The third element of an entity's reduced cost base for its interest in a *CGT asset of a partnership is the entity's share of:

 (a) an amount included in the assessable income of the partnership because of a balancing adjustment for the asset; and

 (b) any amount that would have been so included apart from any of these (which provide relief from including a balancing charge in your assessable income):

 (i) section 42‑285 or 42‑290; or

 (ii) subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936;

calculated according to the entity's share in the partnership net income or net loss.

 (2) Expenditure does not form part of an entity's