Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/9)
Character Range: 2026004–2028599

being deducted.
Note: Section 26‑31 denies deductions for travel related to the use of residential premises as residential accommodation.
 (9K) Expenditure does not form part of the reduced cost base to the extent that a provision of Division 832 (about hybrid mismatch rules) prevents it being deducted.

Assume a CGT event for purposes of working out reduced cost base at a particular time
 (10) If:
 (a) it is necessary to work out the *reduced cost base at a particular time; and
 (b) a *CGT event does not happen in relation to the asset at or just after that time;
assume, for the purpose only of working out the reduced cost base at the particular time, that such an event does happen in relation to the asset at or just after that time.

110‑60  Reduced cost base for partnership assets
 (1) The third element of an entity's reduced cost base for its interest in a *CGT asset of a partnership is the entity's share of:
 (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 the assessable income of the partnership 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 in the assessable income of the partnership for an income year because of a balancing adjustment for the asset—any part of that amount that was attributable to amounts that the partnership has deducted or can deduct for depreciation of the asset; and
 (b) any amount that would have been so included apart from any of these (which provide relief from including a balancing charge in your assessable income):
 (i) section 40‑365; or
 (ii) any of these former sections—section 42‑285, 42‑290 or 42‑293; or
 (iii) former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936;
calculated according to the entity's share in the partnership net income or net loss.
 (2) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner has deducted or can deduct it (including because of a balancing adjustment), or could have deducted it apart from paragraph 43‑70(2)(h).
 (3) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner could have deducted an amount for the asset if it had used it wholly for the *purpose of producing assessable income.
 (4) Expenditure does