Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:2_8:p1
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 2 cl 8 (pt 1/6)
Character Range: 111866–114574

8                     Expenditure on assessable income‑producing buildings and other capital works         Section 43‑10 of this Act

Note: If the asset to which the expenditure relates was disposed of, lost or destroyed before 28 June 1996 or the expenditure was recouped before 28 June 1996, see section 245‑10 of the Income Tax (Transitional Provisions) Act 1997.

 (2) Expenditure is covered by this subsection if:
 (a) it was incurred in respect of an asset you *disposed of to an entity that you dealt with at *arm's length in respect of the disposal; and
 (b) the disposal occurred during the *forgiveness income year before the *forgiveness of any debt owed by you, and the forgiveness resulted in a *net forgiven amount; and
 (c) no provision of this Act includes an amount in your assessable income, or allows you a deduction, as a result of the disposal.

245‑150  Allocation of remaining total net forgiven amount in respect of expenditures

 (1) You may choose:
 (a) the order in which your expenditures are reduced; and
 (b) the amount applied in reduction of each of those expenditures;
so long as that the *total net forgiven amount remaining is applied, to the maximum extent possible, in reduction of your expenditures.

 (2) If you do not make a choice for the purposes of subsection (1), the Commissioner may make the choice on your behalf in a reasonable way.

245‑155  How expenditure is reduced—straight line deductions

 (1) This section applies in respect of the reduction under section 245‑145 of an expenditure of yours, if:
 (a) the amount that you could deduct, apart from this Subdivision, in respect of the expenditure is a percentage, fraction or proportion of an amount (the base amount); and
 (b) the base amount is worked out without regard to any amount or amounts you previously deducted in respect of that expenditure.

 (2) The amount of the reduction of the expenditure must not exceed:
 (a) the base amount; less
 (b) the amount of that part of the expenditure in respect of which you have deducted (disregarding subsection (4)), or can deduct, an amount for any income year before the *forgiveness income year.

 (3) For the purpose of working out your deductions for the *forgiveness income year and later income years, any amount that is applied in reduction of your expenditure is taken to reduce the base amount.

 (4) You are taken to have deducted the amount of the reduction in respect of the expenditure:
 (a) before the *forgiveness income year; and
 (b) for the purposes of any provision of this Act that includes an amount in your assessable income or allows you a deduction:
 (i) because of the *disposal, loss or destruction of the asset in respect of