Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 5/8)
Character Range: 309563–312168

the whole of the loss or outgoing for the *current year; or
 (b) you have deducted or can deduct the whole of the loss or outgoing for an earlier income year.
Note 1: The operation of this section may be affected if a balancing charge has been included in your assessable income because of a deduction for the loss or outgoing: see section 20‑45.
Note 2: Recoupment of a loss or outgoing for which you can deduct amounts over more than one income year is covered by section 20‑40.
Note 3: Recoupment of a loss or outgoing that is only partially deductible is covered by section 20‑50.

Total assessed not to exceed the loss or outgoing
 (2) The total of all amounts that subsection (1) includes in your assessable income for one or more income years in respect of a loss or outgoing cannot exceed the amount of the loss or outgoing.

Recoupment received before income year of the deduction
 (3) If:
 (a) you can deduct the whole of a loss or outgoing for the *current year; and
 (b) before the current year you received an *assessable recoupment of the loss or outgoing;
your assessable income for the current year includes so much of the recoupment as subsection (1) would have included if you had instead received the recoupment at the start of the current year.

20‑40  If the expense is deductible over 2 or more income years
 (1) This section includes an amount in your assessable income if:
 (a) you receive in the *current year an *assessable recoupment of a loss or outgoing for which you can deduct amounts over 2 or more income years; or
 (b) you received in an earlier income year an *assessable recoupment of a loss or outgoing of that kind (unless all of the recoupment has already been included in your assessable income for one or more earlier income years by this section or a *previous recoupment law).
(This section applies even if the recoupment was received before the first of those income years.)
Note: Recoupment of a loss or outgoing that is only partially deductible is covered by section 20‑50.
 (2) Work out as follows how much is included in your assessable income for the *current year because of one or more *assessable recoupments of the loss or outgoing.
Note: The method statement ensures that assessable recoupments are included:
                  *   only so far as they have not already been included for an earlier income year; and
                  *   only to the extent of your total deductions to date for the loss or outgoing.

      Method statement
           Step 1. Add up all the *assessable recoupments of the loss or outgoing that you have received (in the