Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/9)
Character Range: 2018732–2021396

offset) instead of deducting it.

Heritage conservation expenditure giving rise to a tax offset
 (6) Expenditure does not form part of the cost base to the extent that:
 (a) it is eligible heritage conservation expenditure (as determined under former section 159UO of the Income Tax Assessment Act 1936); and
 (b) you, or a partnership in which you are or were a partner, could have deducted it for an income year under any of these Divisions (about capital works):
 (i) Division 43 of this Act;
 (ii) former Division 10C or 10D of Part III of that Act;
  but for the exclusions in paragraph 43‑70(2)(h) of this Act and former subsections 124ZB(4) and 124ZG(5) of that Act.
Note: Because eligible heritage conservation expenditure is the subject of a tax offset, it is also not deductible.

110‑53  Exceptions to application of sections 110‑45 and 110‑50
 (1) Subsection 110‑45(2), (4), (5) or (6) or 110‑50(2), (4), (5) or (6) does not prevent expenditure from forming part of the cost base to the extent that the deduction mentioned in that subsection could reasonably be regarded as arising before 7.30 pm, by legal time in the Australian Capital Territory, on 13 May 1997, or as relating to a period before that time.
 (2) Subsections 110‑45(5) and (6) and 110‑50(5) and (6) do not apply to expenditure incurred before the day on which the Bill that became the Taxation Laws Amendment Act (No. 1) 1999 was introduced into the House of Representatives.

110‑54  Debt deductions disallowed by thin capitalisation rules
  Expenditure does not form part of the third element of the cost base to the extent that Division 820 (Thin capitalisation rules) prevented or prevents you, or a partnership in which you are or were a partner, from deducting it.

Subdivision 110‑B—Reduced cost base

Table of sections
110‑55 General rules about reduced cost base
110‑60 Reduced cost base for partnership assets

110‑55  General rules about reduced cost base
 (1) The reduced cost base of a *CGT asset consists of 5 elements. It does not include indexation of those elements.
Note: The reduced cost base is reduced by net input tax credits: see section 103‑30.

5 elements of the reduced cost base
 (2) All of the elements (except the third one) of the reduced cost base of a *CGT asset are the same as those for the *cost base.
 (3) The third element is:
 (a) any amounts worked out under whichever of the following subparagraphs applies:
 (i) if 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