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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