Income Tax Assessment Act 1997
The *total net forgiven amount (if any) remaining after being applied under sections 245-115 and 245-130 is applied, to the maximum extent possible, in reduction, in accordance with sections 245-150 , 245-155 and 245-157 , of your expenditure that:
(a) is mentioned in the following table (other than expenditure covered by subsection (2)) and was incurred by you before the *forgiveness income year; and
(b) apart from this Subdivision, could be deducted by you for the forgiveness income year or a later income year if no event or circumstance (other than a *recoupment of the expenditure by you in the forgiveness income year) occurred that would affect its deductibility.
|Table of expenditure|
General description of expenditure
Provision under which a deduction is available for the expenditure
|1||Expenditure deductible under Division 40 (Capital allowances)||Division 40 of this Act|
|2||Expenditure incurred in * borrowing money to produce assessable income||Section 25-25 of this Act|
|3||Expenditure on scientific research||Subsection 73A(2) of the Income Tax Assessment Act 1936|
|4||Expenditure deductible under Division 355 (R & D)||Division 355 of this Act|
|5||Advance revenue expenditure||Subdivision H of Division 3 of Part III of the Income Tax Assessment Act 1936|
|6||Expenditure on acquiring a unit of industrial property to produce assessable income||Subsection 124M(1) of the Income Tax Assessment Act 1936|
|7||Expenditure on Australian films||Section 124ZAFA of the Income Tax Assessment Act 1936|
|8||Expenditure on assessable income-producing buildings and other capital works||Section 43-10 of this Act|
If the asset to which the expenditure relates was disposed of, lost or destroyed before 28 June 1996 or the expenditure was recouped before 28 June 1996, see section 245-10 of the Income Tax (Transitional Provisions) Act 1997 .
Expenditure is covered by this subsection if:
(a) it was incurred in respect of an asset you *disposed of to an entity that you dealt with at *arm ' s length in respect of the disposal; and
(b) the disposal occurred during the *forgiveness income year before the *forgiveness of any debt owed by you, and the forgiveness resulted in a *net forgiven amount; and
(c) no provision of this Act includes an amount in your assessable income, or allows you a deduction, as a result of the disposal.