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Reversal of deduction: effect on cost base

Last updated 3 March 2016

In some cases, a deduction you have claimed on a CGT asset can be partly or wholly 'reversed' – that is, part or all of the deduction may be included in your assessable income in the year the CGT event happens. In this case, the cost base of the CGT asset is increased by the amount you have to include in your assessable income.