Income Tax Assessment Act 1997
This Division applies to any commercial debt (or part of a commercial debt) you owe that is forgiven.
This Division does not apply if:
The net forgiven amount of a debt is worked out by reducing the value of your forgiven debt by:
The net forgiven amounts of all your forgiven debts in an income year are added up. This total net forgiven amount is applied to reduce the following amounts (in the following order):
(a) your tax losses from previous income years;
(b) your net capital losses from previous income years;
(c) the deductions you would otherwise get in the income year, or in a later year, because of expenditure from a previous year (e.g. the capital allowance deductions you would get for the cost of a depreciating asset);
(d) the cost bases of your CGT assets. 245-2(4)
Any unapplied total net forgiven amount is disregarded. 245-2(5)
Special rules apply to debts of partnerships.
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