Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:5_10:p1
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 5 cl 10 (pt 1/2)
Character Range: 94111–96760

10  At the end of Subdivision 20‑A
Add:

What if you can deduct a loss or outgoing incurred by another entity?

20‑60  If you are the only entity that can deduct an amount for the loss or outgoing

  This Subdivision applies in a different way if:
 (a) an entity (other than you) incurs a loss or outgoing; and
 (b) you can deduct the whole of the loss or outgoing for an income year, or you can deduct amounts for the loss or outgoing over 2 or more income years; and
 (c) no other entity can deduct an amount for the loss or outgoing; and
 (d) the entity that incurred the loss or outgoing receives one or more amounts as *recoupment of the loss or outgoing.
This Subdivision (except this section and section 20‑65) applies as if you had incurred the loss or outgoing and had also received the *recoupment.

20‑65  If 2 or more entities can deduct amounts for the loss or outgoing

 (1) Special rules apply if:
 (a) an entity (the first entity) incurs a loss or outgoing; and
 (b) 2 or more entities (the deducting entities, which may include the first entity) have deducted or can deduct amounts for the loss or outgoing (whether for the same income year or for different income years); and
 (c) the first entity receives one or more amounts as *recoupment of the loss or outgoing.

 (2) This Subdivision (except this section and section 20‑60) applies as if the first entity and the deducting entities together constituted a single entity (the notional entity) that had:
 (a) incurred the loss or outgoing; and
 (b) received the amount or amounts as *recoupment; and
 (c) included in its assessable income any amount included in the assessable income of any of the deducting entities under a *previous recoupment law or this Subdivision (except this section).

 (3) If because of subsection (2) the notional entity's assessable income for an income year (the assessment year) would include an amount under this Subdivision (the assessable amount), the amount reverses in the assessment year the deductions for the loss or outgoing, in accordance with the rules in subsection (5).

 (4) The assessable income of each deducting entity for the assessment year includes the total amounts (if any) by which that entity's actual deductions for the loss or outgoing are reversed in that income year.

 (5) Deductions for the loss or outgoing are reversed in the assessment year as follows:
 (a) the amounts by which deductions are reversed total the assessable amount (unless all the deductions have been reversed);
 (b) a deduction for an income year is not reversed until all deductions for earlier income years have been reversed;
 (c) a deduction