Income Tax Assessment Act 1997
View history note
Hide history noteThe *capital proceeds from a *CGT event are reduced by:
(a) any part of them that you repay; or
(b) any compensation you pay that can reasonably be regarded as a repayment of part of them.
However, the capital proceeds are not reduced by any part of the payment that you can deduct.
Example:
You sell a block of land for $50,000 (the capital proceeds). The purchaser later finds out that you misrepresented a term in the contract. The purchaser sues you and the court orders you to pay $10,000 in damages to the purchaser.
The capital proceeds are reduced by $10,000.
116-50(2)
The payment can include giving property: see section 103-5 .
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