Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An amount of a deduction that relates directly only to one or more amounts of assessable income can be deducted only against that amount or those amounts of assessable income. If there are 2 or more such amounts of assessable income, the amount of the deduction is allocated against those amounts on a reasonable basis.
(2) If an amount of a deduction remains after applying the rules in subsection (1), the remainder can be deducted against other amounts of assessable income. The amount of the remainder is allocated against those amounts on a reasonable basis.
(3) For the purposes of this section, determine whether a deduction relates directly to an amount of assessable income on a reasonable basis.