Draft Taxation Determination

TD 1999/D56

Income tax: capital gains: what does the word 'incur' in subsection 124-75(2) of the Income Tax Assessment Act 1997 mean?

Please note that the PDF version is the authorised version of this draft ruling.

This document has been finalised by TD 2000/39.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office.

1. The word 'incur' in the context of subsection 124-75(2) of the Income Tax Assessment Act 1997 means, in relation to expenditure in acquiring a CGT asset, that you outlay expenditure or that you have definitively committed yourself or have completely subjected yourself to a presently existing liability to outlay the expenditure.

Note:

2. The word 'incur' has the same meaning in subsection 124-75(2) as it has in its context in the general deduction provision in subsection 8-1(1).

Your comments

We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Comments by Date:	1 September 1999
Contact officer details have been removed following publication of the final ruling.

Commissioner of Taxation
4 August 1999

References

ATO references:
NO 99/10859-2
BO CGT Involuntary Disposal summit 1999

ISSN 1038 - 8982

Subject References:
Acquisition
asset
CGT asset
expenditure
incur
incurred

Legislative References:
ITAA 1997 8-1(1)
124-75(2)

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