Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 245.190

Reduction of the relevant cost bases of a CGT asset

             (1)  Subject to subsection (3), if you choose to apply an amount in reduction of the * cost base and * reduced cost base of a particular * CGT asset, the cost base and reduced cost base of the asset, as at any time on or after the beginning of the * forgiveness income year, are reduced by that amount.

             (2)  The reduction by a particular amount of the * cost base and * reduced cost base of a particular * CGT asset is, for the purpose of working out the amount by which the * total net forgiven amount remaining is applied, taken to be a reduction by the particular amount (and not by the sum of the amounts by which those cost bases are reduced).

             (3)  The maximum amount by which the * cost base and * reduced cost base of a * CGT asset may be reduced is the amount that, apart from sections 245- 175 to 245-185, would be the reduced cost base of the asset calculated as if a * CGT event had happened to the asset:

                     (a)  subject to paragraph (b), on the first day of the * forgiveness income year; or

                     (b)  if, after the beginning of that income year, an event occurred that would cause the reduced cost base of the asset to be reduced--on the day on which the event occurred;

and the asset had been * disposed of at its * market value on the day concerned.

Unapplied total net forgiven amount



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