Document ID: chunk:federal_register_of_legislation:C2025C00014:section:52:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 52 (pt 1/2)
Character Range: 368145–370790

52  Loss on property acquired for profit‑making
 (1AA) This section does not apply to a loss arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.
Note: Section 25‑40 (Loss from profit‑making scheme) of the Income Tax Assessment Act 1997 deals with such a loss.
 (1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.
 (1) Any loss incurred by the taxpayer in the year of income upon the sale of any property or from the carrying on or carrying out of any undertaking or scheme, the profit (if any) from which sale, undertaking or scheme would have been included in the taxpayer's assessable income, shall be an allowable deduction:
       Provided that, in respect of property acquired by the taxpayer after the date of the commencement of this proviso, no deduction shall be allowable under this section (except where the Commissioner, being satisfied that the property was acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme, otherwise directs) unless the taxpayer, not later than the date upon which he or she lodges his or her first return under this Act after having acquired the property, notifies the Commissioner that the property has been acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme.
 (2) Where:
 (a) a taxpayer sells property (in this subsection referred to as the relevant property) that is deemed by subsection 25A(5) or (8) to have been acquired by the taxpayer for the purpose of profit‑making by sale;
 (b) the Commissioner is satisfied that the relevant property has not been held or used by the taxpayer in a manner inconsistent with such a purpose; and
 (c) the Commissioner, having regard to:
 (i) the amount of the consideration paid by the person who transferred the relevant property or, in a case to which subsection 25A(8) applies, the property referred to in paragraph 25A(8)(b), to the taxpayer in respect of the purchase of the property so transferred; and
 (ii) such other matters as the Commissioner considers relevant;
  considers that it is appropriate that a loss be deemed to be incurred by the taxpayer upon the sale of the relevant property;
the taxpayer shall be deemed, for the purposes of this section, to have incurred a loss upon the