Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 245.1

What this Division is about

When a creditor forgives a commercial debt you owe, you make a gain. This is usually not included in your assessable income. Instead, this Division offsets the forgiven amount against amounts that could otherwise reduce your taxable income in the same or a later income year. Those amounts are:

  (a)   your tax losses and net capital losses; and

  (b)   capital allowances and some similar deductions; and

  (c)   the cost bases of your CGT assets.



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