Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The third element of an entity's reduced cost base for its interest in a * CGT asset of a partnership is the entity's share of:
(a) any amounts worked out under whichever of the following subparagraphs applies:
(i) if Division 58 does not apply to the asset--any amount included in the assessable income of the partnership for any income year because of a balancing adjustment for the asset;
(ii) if Division 58 applies to the asset and an amount has been included in the assessable income of the partnership for an income year because of a balancing adjustment for the asset--any part of that amount that was attributable to amounts that the partnership has deducted or can deduct for depreciation of the asset; and
(b) any amount that would have been so included apart from any of these (which provide relief from including a balancing charge in your assessable income):
(i) section 40 - 365; or
(ii) any of these former sections--section 42 - 285, 42 - 290 or 42 - 293; or
(iii) former subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936 ;
calculated according to the entity's share in the partnership net income or net loss.
(2) Expenditure does not form part of an entity's reduced cost base for its interest in a * CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner has deducted or can deduct it (including because of a balancing adjustment), or could have deducted it apart from paragraph 43 - 70(2)(h).
(3) Expenditure does not form part of an entity's reduced cost base for its interest in a * CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner could have deducted an amount for the asset if it had used it wholly for the * purpose of producing assessable income.
(4) Expenditure does not form part of an entity's reduced cost base for its interest in a * CGT asset of a partnership to the extent of any amounts that a partnership in which the entity is or was a partner has received as * recoupment of it and that are not included in the assessable income of the partnership.
(4A) Expenditure does not form part of an entity's reduced cost base for its interest in a * CGT asset of a partnership to the extent that the entity chose a * tax offset for the expenditure under the former section 388 - 55 (about the landcare and water facility tax offset) instead of deducting it.
(7) The reduced cost base of an entity's interest in a * CGT asset of a partnership is to be reduced by the entity's share of any amount that the partnership has deducted or can deduct, or could have deducted except for Subdivision 170 - D, as a result of a * CGT event that happens in relation to the asset. However, a reduction is not to be made for an amount that relates to a cost that could never have formed part of the reduced cost base or is excluded from the reduced cost base as a result of another provision of this section.
Table of Subdivisions
Guide to Division 112
112 - A General modifications
112 - B Finding tables for special rules
112 - C Replacement - asset roll - overs
112 - D Same - asset roll - overs