Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 4/9)
Character Range: 2021168–2023777

Division 58 does not apply to the asset—any amount included in your assessable income for any income year because of a balancing adjustment for the asset;
 (ii) if Division 58 applies to the asset and an amount has been included in your assessable income for an income year because of a balancing adjustment for the asset—any part of that amount that was attributable to amounts you have deducted or can deduct for the decline in value of the asset; and
 (b) any amount that would have been so included apart from any of these (which provide relief from including a balancing charge in your assessable income):
 (i) section 40‑365; or
 (ii) any of these former sections—section 42‑285, 42‑290 or 42‑293; or
 (iii) former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936.

What does not form part of the reduced cost base
 (4) The reduced cost base does not include an amount to the extent that you have deducted or can deduct it (including because of a balancing adjustment) or could have deducted apart from paragraph 43‑70(2)(h).
Note: That paragraph excludes from deductibility under Division 43 expenditure that qualifies for the heritage conservation rebate.
 (5) The reduced cost base does not include an amount that you could have deducted for a *CGT asset had you used it wholly for the *purpose of producing assessable income.
 (6) Expenditure does not form part of the reduced cost base to the extent of any amounts you have received as *recoupment of it. However, this rule does not apply to the extent that the amounts are included in your assessable income.
 (6A) Expenditure does not form part of the reduced cost base to the extent that you chose a *tax offset for it under the former section 388‑55 (about the landcare and water facility tax offset) instead of deducting it.
 (7) If your *CGT asset is a *share in a company, its reduced cost base is reduced by the amount calculated under subsection (8) if:
 (aa) you are a *corporate tax entity; and
 (a) the company makes a distribution to you under an *arrangement; and
 (b) an amount (the attributable amount) representing the distribution or part of it is reasonably attributable to profits *derived by the company before you cacquired the share; and
 (c) you are entitled to a *tax offset under Division 207 on the part of the distribution that is a *dividend (the dividend amount); and
 (d) you were a *controller (for CGT purposes) of the company, or an *associate of such a controller, when the arrangement was made or carried out.
 (8) The amount of the reduction is:
 (9) The reduced cost base is to be reduced by any