Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If, apart from this section, a loss would be * realised for income tax purposes by a * realisation event that happens to a * CGT asset when it is in a * loss denial pool of an entity, the loss is reduced by the lesser of:
(a) the amount of the loss; and
(b) the pool's * loss denial balance (as reduced by any previous reductions under section 715 - 130 or this subsection);
and the loss denial balance is reduced by the same amount.
(2) Subsection (1) applies to * realisation events in the order in which they happen. If 2 or more happen at the same time, it applies to them in whichever order the entity determines.
(3) Subsection (1) reduces a * loss denial balance after section 715 - 130 does, unless the * realisation event happens before the leaving time referred to in that section.