Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 8/8)
Character Range: 317129–318598

(step 5), so the amount of the outstanding deductions is included in assessable income, i.e. $5,000.

20‑50  If the expense is only partially deductible
 (1) This section extends the operation of section 20‑35 or 20‑40 (as appropriate) to a case where the total of what you can deduct under a provision (the deduction provision) for a loss or outgoing is limited to a proportion of the loss or outgoing.
 (2) If you receive an *assessable recoupment of the loss or outgoing, section 20‑35 or 20‑40 applies as if:
 (a) you had incurred only that proportion of the loss or outgoing, but could deduct the whole of that proportion under the deduction provision; and
 (b) you had received only that proportion of the recoupment.
Example: You incur expenditure of $500. A provision listed in section 20‑30 entitles you to deduct 10% of the expenditure ($50) over 5 years. This means you can deduct $10 in each of the 5 years.
 You recoup $300 of the expenditure. This section treats you as receiving only 10% of the recoupment. Therefore, $30 is dealt with by section 20‑40.

20‑55  Meaning of previous recoupment law
 (1) Previous recoupment law means a provision of the Income Tax Assessment Act 1936 listed in this table.

Previous recoupment law
                                                                                                                                                What kind of expense the provision relates to:
Item                     Provision