Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:2_6:p5
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 2 cl 6 (pt 5/6)
Character Range: 107218–109920

of the *net forgiven amounts of all your debts that are *forgiven in that year.

Note 1: The total net forgiven amount may be reduced under section 707‑415.

Note 2: The total net forgiven amount of a partner in a partnership is affected by section 245‑215.

 (2) Your *total net forgiven amount is applied, in accordance with sections 245‑115 to 245‑195, for the *forgiveness income year.

Reduction of tax losses

245‑115  Total net forgiven amount is applied in reduction of tax losses

  The *total net forgiven amount is applied first, to the maximum extent possible, in reduction, in accordance with section 245‑120, of your *tax losses (if any) for any income years, if the tax losses could, if you had enough assessable income, be deducted in:
 (a) the *forgiveness income year; or
 (b) a later income year.

245‑120  Allocation of total net forgiven amount in respect of tax losses

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

 (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.

Reduction of net capital losses

245‑130  Remaining total net forgiven amount is applied in reduction of net capital losses

 (1) The *total net forgiven amount (if any) remaining after being applied under section 245‑115 is applied, to the maximum extent possible, in reduction, in accordance with section 245‑135, of your *net capital losses (if any) specified in subsection (2).

 (2) Those *net capital losses are your net capital losses for income years before the *forgiveness income year that you could apply in working out your *net capital gain for the forgiveness income year if you had enough capital gains.

245‑135  Allocation of remaining total net forgiven amount in respect of net capital losses

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

 (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.

Reduction of expenditure

245‑145  Remaining total net forgiven amount is applied in reduction of expenditure

 (1) The *total net forgiven amount (if any) remaining after being applied under sections 245‑115 and 245‑130 is applied, to the maximum extent possible, in reduction,