Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 245.175

Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets

  (1)   The * total net forgiven amount (if any) remaining after being applied under sections   245 - 115, 245 - 130 and 245 - 145 is applied, to the maximum extent possible, in reduction, in accordance with sections   245 - 180 to 245 - 190, of the * cost base and * reduced cost base of your * CGT assets.

  (2)   Subsection   (1) does not apply to the following * CGT assets:

  (a)   a * pre - CGT asset;

  (b)   a CGT asset you * acquire after the start of the * forgiveness income year;

  (c)   a * personal use asset;

  (d)   a * dwelling that was your main residence at any time before the forgiveness income year;

  (e)   goodwill;

  (f)   a right of yours covered by section   118 - 305 (which exempts from CGT certain rights relating to a superannuation fund or approved deposit fund);

  (g)   a CGT asset that, throughout the period before the forgiveness income year when it was owned by you, was your * trading stock;

  (h)   a CGT asset if:

  (i)   expenditure by you (of a kind which is subject to reduction under section   245 - 145) relates to the asset; and

  (ii)   a * CGT event in relation to the asset would result in an amount being included in your assessable income, or in you being able to deduct an amount;

  (i)   if you are a foreign resident at the beginning of the forgiveness income year--an asset of yours that is not * taxable Australian property.


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