Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if a provision of Division 832 would, apart from section 832 - 785, apply to make not allowable an amount (the relevant amount ) that is all or a part of the deduction for:
(a) a loss from a * Division 230 financial arrangement; or
(b) an amount treated under section 832 - 790 as a separate loss from a Division 230 financial arrangement.
(2) The following have effect:
(a) if (disregarding section 832 - 790) you made a loss from the * financial arrangement, and the relevant amount does not exceed the amount of the loss--the amount of the loss you made is reduced by the relevant amount;
(b) if (disregarding section 832 - 790) you made a loss from the financial arrangement, and the relevant amount exceeds the amount of the loss:
(i) you do not make a loss from the financial arrangement; and
(ii) instead, you make a gain from the financial arrangement equal to the amount of the excess;
(c) if (disregarding section 832 - 790) you made a gain from the financial arrangement--the amount of the gain is increased by the relevant amount.
(3) The effect of subsection (2) is to be disregarded for the purposes of paragraph (c) of step 1 and paragraph (c) of step 2 of subsection 230 - 445(1) (about balancing adjustments).