Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:2_8:p2
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 2/6)
Character Range: 114352–117110

income year; and
 (b) for the purposes of any provision of this Act that includes an amount in your assessable income or allows you a deduction:
 (i) because of the *disposal, loss or destruction of the asset in respect of which the expenditure was incurred; or
 (ii) because of the *recoupment of any of the expenditure; or
 (iii) because use of the asset for a particular purpose has been otherwise terminated; or
 (iv) because a *balancing adjustment event occurs for that asset.

 (5) The amount of that part of the expenditure in respect of which you have deducted (disregarding subsection (4), or can deduct, an amount for all income years (including income years before the *forgiveness income year) must not exceed the base amount as reduced under subsection (3).

245‑157  How expenditure is reduced—diminishing balance deductions

  Any amount applied in reduction under section 245‑145 of an expenditure of yours is taken to have been deducted by you in respect of the expenditure before the *forgiveness income year, if the amount you could deduct, apart from this Subdivision, in respect of the expenditure is a percentage, fraction or proportion of an amount that is worked out after taking into account any amount previously deducted by you in respect of the expenditure.

245‑160  Amount applied in reduction of expenditure included in assessable income in certain circumstances

  If:
 (a) after the *forgiveness income year you *recoup an amount of expenditure that is subject to reduction under section 245‑145; and
 (b) as a result of the recoupment, this Act applies to disallow any amount you have deducted in respect of the expenditure;
an amount equal to the amount, or the sum of the amounts, applied under this Subdivision in reduction of the expenditure is included in your assessable income in the income year in which the expenditure is recouped.

Reduction of cost bases of assets

245‑175  Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets

 (1) The *total net forgiven amount (if any) remaining after being applied under sections 245‑115, 245‑130 and 245‑145 is applied, to the maximum extent possible, in reduction, in accordance with sections 245‑180 to 245‑190, of the *cost base and *reduced cost base of your *CGT assets.

 (2) Subsection (1) does not apply to the following *CGT assets:
 (a) a *pre‑CGT asset;
 (b) a CGT asset you *acquire after the start of the *forgiveness income year;
 (c) a *personal use asset;
 (d) a *dwelling 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)