Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_68
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 68
Character Range: 69114–70214

68  Section 820‑220
Omit:
  The amount of *debt deduction disallowed under subsection 820‑185(1) is worked out using the following formula:
substitute:
 (1) If subparagraph 820‑185(1A)(b)(i) applies, the amount (the total disallowed amount) disallowed under subsection 820‑185(1) of the *debt deductions of an entity for an income year is the amount by which those debt deductions exceed the entity's *third party earnings limit for the income year (see section 820‑427A).
Note: The disallowed amount also does not form part of the cost base of a CGT asset. See section 110‑54.
 (2) The amount by which a particular *debt deduction is disallowed as a result of subsection (1) is worked out as follows:
 (a) first, divide the total disallowed amount by the *debt deductions of the entity for the income year;
 (b) next, multiply the amount of the particular debt deduction by the result of paragraph (a).
 (3) If subparagraph 820‑185(1A)(b)(ii) applies, the amount of a *debt deduction of an entity for an income year disallowed under subsection 820‑185(1) is worked out using the following formula: