INCOME TAX ASSESSMENT ACT 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-5
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RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS
Division 35
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Deferral of losses from non-commercial business activities
Operative provisions
SECTION 35-5
Object
35-5(1)
The object of this Division is to improve the integrity of the taxation system by:
(a) preventing losses from non-commercial activities that are carried on as * businesses by individuals (alone or in partnership) being offset against other assessable income; and
(b) preventing pre-business capital expenditure and post-business capital expenditure by individuals (alone or in partnership) in relation to non-commercial activities being deductible under section 40-880 (business related costs);
35-5(2)
This Division is not intended to apply to activities that do not constitute carrying on a * business (for example, the receipt of income from passive investments).
View history note
Hide history noteThe object of this Division is to improve the integrity of the taxation system by:
(a) preventing losses from non-commercial activities that are carried on as * businesses by individuals (alone or in partnership) being offset against other assessable income; and
(b) preventing pre-business capital expenditure and post-business capital expenditure by individuals (alone or in partnership) in relation to non-commercial activities being deductible under section 40-880 (business related costs);
unless certain exceptions apply.
This Division is not intended to apply to activities that do not constitute carrying on a * business (for example, the receipt of income from passive investments).
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