Document ID: chunk:federal_register_of_legislation:C2025C00014:section:52:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 52 (pt 2/2)
Character Range: 370578–372291

that it is appropriate that a loss be deemed to be incurred by the taxpayer upon the sale of the relevant property;
the taxpayer shall be deemed, for the purposes of this section, to have incurred a loss upon the sale of the relevant property of such amount as the Commissioner considers appropriate.
 (3) Except as provided by subsection (2), a deduction is not allowable to a taxpayer under this section in respect of a loss incurred upon a sale of property to which paragraph (2)(a) applies.
 (4) Where:
 (a) a loss is incurred by a taxpayer upon the sale of property (in this subsection referred to as the relevant property); and
 (b) the taxpayer is deemed to have acquired the relevant property for the purpose of profit‑making by sale by virtue of the application of subsection 25A(6) in accordance with subparagraph (b)(ii) of that subsection;
the deduction that would, but for this subsection, be allowable to the taxpayer under subsection (1) in respect of the loss shall be reduced by such amount (if any) as the Commissioner considers reasonable having regard to the extent to which the relevant property is attributable to the interest in property that was acquired by the taxpayer for the purpose of profit‑making by sale as mentioned in that subparagraph.
 (5) A deduction is not allowable to a taxpayer under subsection (1) in respect of a loss incurred by the taxpayer upon the sale of property if:
 (a) the sale is a transfer in the prescribed manner by the taxpayer for the purposes of section 25A; or
 (b) the property is deemed by subsection 25A(2) to have been acquired by the taxpayer for the purposes of profit‑making by sale and was not actually acquired by the taxpayer for that purpose.