Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/9)
Character Range: 2028375–2030971

partnership to the extent that a partnership in which the entity is or was a partner could have deducted an amount for the asset if it had used it wholly for the *purpose of producing assessable income.
 (4) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent of any amounts that a partnership in which the entity is or was a partner has received as *recoupment of it and that are not included in the assessable income of the partnership.
 (4A) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent that the entity chose a *tax offset for the expenditure under the former section 388‑55 (about the landcare and water facility tax offset) instead of deducting it.
 (7) The reduced cost base of an entity's interest in a *CGT asset of a partnership is to be reduced by the entity's share of any amount that the partnership has deducted or can deduct, or could have deducted except for Subdivision 170‑D, as a result of a *CGT event that happens in relation to the asset. However, a reduction is not to be made for an amount that relates to a cost that could never have formed part of the reduced cost base or is excluded from the reduced cost base as a result of another provision of this section.

Division 112—Modifications to cost base and reduced cost base

Table of Subdivisions
 Guide to Division 112
112‑A General modifications
112‑B Finding tables for special rules
112‑C Replacement‑asset roll‑overs
112‑D Same‑asset roll‑overs

Guide to Division 112

112‑1  What this Division is about
      This Division tells you the situations that may modify the general rules about the cost base and reduced cost base of a CGT asset.

112‑5  Discussion of modifications
 (1) Modifications can occur from the time you acquired the CGT asset to when a CGT event happens in relation to it.
Note: You should keep records of the modifications: see Division 121.
 (2) Most modifications replace the first element (what you paid for a CGT asset) of the cost base and reduced cost base of the asset.
 (3) Subdivision 112‑A contains operative provisions setting out the general situations that may result in a modification to the general rules.
 (4) Subdivision 112‑B (which is a guide) has a number of tables (each one covering a specialist topic) that tell you each situation that may result in a modification to the general rules.
 (5) Subdivision 112‑C (which is a guide) explains what a replacement‑asset roll‑over is and how it can modify the cost base