Document ID: chunk:federal_register_of_legislation:C2025C00014:section:52a:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 52A (pt 1/6)
Character Range: 372293–374971

52A  Certain amounts disregarded in ascertaining taxable income
 (1) Notwithstanding section 8‑1 of the Income Tax Assessment Act 1997, losses or outgoings consisting of expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property as trading stock of the taxpayer shall, if the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the whole of those losses or outgoings, be allowable as a deduction to the taxpayer to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of those losses or outgoings.
 (2) Where:
 (a) expenditure incurred by a taxpayer in the purchase or acquisition, after 7 April 1978, of any prescribed property that was purchased or acquired in the carrying on or carrying out of any profit‑making undertaking or scheme would, but for this subsection, be taken into account for the purpose of ascertaining whether any profit arose, or any loss was incurred, from the carrying on or carrying out of the undertaking or scheme and for the purpose of ascertaining the amount of any such profit or loss; and
 (b) the Commissioner considers that it would be unreasonable that the whole of that expenditure be taken into account for those purposes;
that expenditure shall be taken into account for those purposes to the extent only that the Commissioner considers that it is reasonable in the circumstances that the expenditure be taken into account for those purposes.
 (2A) Where:
 (a) prescribed property that was acquired by a taxpayer after 24 September 1978 and before the commencement of this subsection or is acquired after the commencement of this subsection was or is treated or used by the taxpayer as an asset of a business carried on by the taxpayer;
 (b) but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of that property; and
 (c) the Commissioner considers that it would be unreasonable that a deduction be allowable to the taxpayer in respect of the value of the property to the extent to which, but for this subsection, a deduction would be allowable to the taxpayer in respect of the value of the property;
a deduction shall be allowable to the taxpayer in respect of the value of the property to the extent only that the Commissioner considers that it is reasonable in the circumstances that a deduction be allowable to the taxpayer in respect of that value.
 (2B) Where:
 (a) the value of any prescribed property that:
 (i) was acquired by a taxpayer after 24 September 1978 and before the