Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Temporarily disregard a portion of a * capital loss you make from * disposing of a * CGT asset if the capital loss could be reduced by you receiving one or more * financial benefits under a * look - through earnout right relating to the CGT asset and the disposal.
(2) The portion of the * capital loss that is temporarily disregarded is:
(a) if those * financial benefits can never exceed a maximum amount that is certain--so much of the capital loss as is equal to that maximum amount; or
(b) otherwise--all of the capital loss.
Note: When you receive a financial benefit under the look - through earnout right:
(a) you cease to disregard under this section a portion of your loss related to the amount of that financial benefit; and
(b) your capital proceeds for the disposal increase (see paragraph
116 - 120(1)(b)), causing a reduction in the amount of your loss.