Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * total net forgiven amount (if any) remaining after being applied under sections 245 - 115 and 245 - 130 is applied, to the maximum extent possible, in reduction, in accordance with sections 245 - 150, 245 - 155 and 245 - 157, of your expenditure that:
(a) is mentioned in the following table (other than expenditure covered by subsection (2)) and was incurred by you before the * forgiveness income year; and
(b) apart from this Subdivision, could be deducted by you for the forgiveness income year or a later income year if no event or circumstance (other than a * recoupment of the expenditure by you in the forgiveness income year) occurred that would affect its deductibility.
Table of expenditure | ||
Item | Column 1 General description of expenditure | Column 2 Provision under which a deduction is available for the expenditure |
1 | Expenditure deductible under Division 40 (Capital allowances) | Division 40 of this Act |
2 | Expenditure incurred in * borrowing money to produce assessable income | |
3 | Expenditure on scientific research | Subsection 73A(2) of the Income Tax Assessment Act 1936 |
4 | Expenditure deductible under Division 355 (R&D) | Division 355 of this Act |
5 | Advance revenue expenditure | Subdivision H of Division 3 of Part III of the Income Tax Assessment Act 1936 |
6 | Expenditure on acquiring a unit of industrial property to produce assessable income | Subsection 124M(1) of the Income Tax Assessment Act 1936 |
7 | Expenditure on Australian films | Section 124ZAFA of the Income Tax Assessment Act 1936 |
8 | Expenditure on assessable income - producing buildings and other capital works | Section 43 - 10 of this Act |
Note: If the asset to which the expenditure relates was disposed of, lost or destroyed before 28 June 1996 or the expenditure was recouped before 28 June 1996, see section 245 - 10 of the Income Tax (Transitional Provisions) Act 1997 .
(2) Expenditure is covered by this subsection if:
(a) it was incurred in respect of an asset you * disposed of to an entity that you dealt with at * arm's length in respect of the disposal; and
(b) the disposal occurred during the * forgiveness income year before the * forgiveness of any debt owed by you, and the forgiveness resulted in a * net forgiven amount; and
(c) no provision of this Act includes an amount in your assessable income, or allows you a deduction, as a result of the disposal.