Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 3/30)
Character Range: 4170176–4172770

that was your main residence at any time before the forgiveness income year;
 (e) goodwill;
 (f) a right of yours covered by section 118‑305 (which exempts from CGT certain rights relating to a superannuation fund or approved deposit fund);
 (g) a CGT asset that, throughout the period before the forgiveness income year when it was owned by you, was your *trading stock;
 (h) a CGT asset if:
 (i) expenditure by you (of a kind which is subject to reduction under section 245‑145) relates to the asset; and
 (ii) a *CGT event in relation to the asset would result in an amount being included in your assessable income, or in you being able to deduct an amount;
 (i) if you are a foreign resident at the beginning of the forgiveness income year—an asset of yours that is not *taxable Australian property.

245‑180  Allocation of remaining total net forgiven amount among relevant cost bases of CGT assets
 (1) Subject to section 245‑185, you may choose:
 (a) your *CGT assets whose *cost base and *reduced cost base are subject to reduction under section 245‑175; and
 (b) the amount applied in reduction of the cost base and reduced cost base of each of those assets;
so long as the *total net forgiven amount remaining is applied, to the maximum extent possible, in reduction of the cost base and reduced cost base of such assets.
 (2) If you do not make a choice for the purposes of subsection (1), the Commissioner may make the choice on your behalf in a reasonable way.

245‑185  Relevant cost bases of investments in associated entities are reduced last
  If your *CGT assets that are subject to reduction under section 245‑175 include investments in, or in relation to, an *associate of yours (including *membership interests, or *debt interests, in your associate), the:
 (a) *cost base; and
 (b) *reduced cost base;
of those assets are not subject to reduction under section 245‑175 until the *total net forgiven amount (if any) remaining has been applied, to the maximum extent possible, in reduction of the cost bases of your other CGT assets.

245‑190  Reduction of the relevant cost bases of a CGT asset
 (1) Subject to subsection (3), if you choose to apply an amount in reduction of the *cost base and *reduced cost base of a particular *CGT asset, the cost base and reduced cost base of the asset, as at any time on or after the beginning of the *forgiveness income year, are reduced by that amount.
 (2) The reduction by a particular amount of the *cost base and *reduced cost base of a particular *CGT asset is, for the purpose of working out the amount by which the *total net