Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 245-95 What this Subdivision is about
The total of the net forgiven amounts of all your debts forgiven in an income year is applied to reduce 4 classes of amounts that could otherwise reduce your taxable income in the same or a later income year. It is applied in the following order:
You can choose the order in which the net forgiven amounts reduce the amounts within each class.
If all the amounts in the 4 classes are reduced to nil, any remaining net forgiven amounts are disregarded.
| General operative provisions | |
| 245-100 | Subdivision not to apply to calculation of attributable income |
| 245-105 | How total net forgiven amount is applied |
| Reduction of tax losses | |
| 245-115 | Total net forgiven amount is applied in reduction of tax losses |
| 245-120 | Allocation of total net forgiven amount in respect of tax losses |
| Reduction of net capital losses | |
| 245-130 | Remaining total net forgiven amount is applied in reduction of net capital losses |
| 245-135 | Allocation of remaining total net forgiven amount in respect of net capital losses |
| Reduction of expenditure | |
| 245-145 | Remaining total net forgiven amount is applied in reduction of expenditure |
| 245-150 | Allocation of remaining total net forgiven amount in respect of expenditures |
| 245-155 | How expenditure is reduced - straight line deductions |
| 245-157 | How expenditure is reduced - diminishing balance deductions |
| 245-160 | Amount applied in reduction of expenditure included in assessable income in certain circumstances |
| Reduction of cost bases of assets | |
| 245-175 | Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets |
| 245-180 | Allocation of remaining total net forgiven amount among relevant cost bases of CGT assets |
| 245-185 | Relevant cost bases of investments in associated entities are reduced last |
| 245-190 | Reduction of the relevant cost bases of a CGT asset |
| Unapplied total net forgiven amount | |
| 245-195 | No further consequences if there is any remaining unapplied total net forgiven amount |
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