Income Tax Assessment Act 1997
View history note
Hide history noteYou can deduct a loss arising from the carrying on or carrying out of a profit-making undertaking or plan if any profit from that plan would have been included in your assessable income by section 15-15 (which is about profit-making undertakings and plans).
When section does not apply
25-40(2)
You cannot deduct a loss under subsection (1) if the loss arises in respect of the sale of property acquired on or after 20 September 1985.
Note:
If you sell property you acquired before 20 September 1985 for profit-making by sale, you may be able to deduct a loss on the sale: see section 52 of the Income Tax Assessment Act 1936 .
Notice to Commissioner
25-40(3)
You can deduct a loss under subsection (1), insofar as it arises in respect of property, only if:
(a) you notified the Commissioner that you acquired the property for the purpose of profit-making by sale or for the carrying on or carrying out of any profit-making undertaking or plan (however described); or
(b) the Commissioner is satisfied that you acquired the property for either of those purposes.
When notice must have been given
25-40(4)
The notice must have been given at or before the time you lodged your * income tax return:
(a) for the income year in which you acquired the property; or
(b) if you were not required to lodge an income tax return for that income year - for the first income year after that income year for which you were required to lodge one.
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