Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (2), if a person carries on a business, the person's ordinary income from the business is to be reduced by:
(a) losses and outgoings that relate to the business and are allowable deductions for the purposes of section 8 - 1 of the Income Tax Assessment Act 1997 ; and
(ba) amounts that relate to the business and can be deducted for the decline in value of depreciating assets under Subdivision 40 - B of the Income Tax Assessment Act 1997 ; and
(c) amounts that relate to the business and are allowable deductions under section 290 - 60 of the Income Tax Assessment Act 1997 .
(2) If, under Division 3, a person is taken to receive ordinary income on a financial investment, that ordinary income is not to be reduced by the amount of any expenses incurred by the person because of that investment.
Note: For financial investment see subsection 5J(1).
(3) If a person's ordinary income for a period includes rental income from a property that is not business income, the person's ordinary income from that property is to be reduced by losses and outgoings that relate to the property and are allowable deductions for the purposes of section 8 - 1 of the Income Tax Assessment Act 1997 for that period.
(4) If the amount of the allowable deductions relating to a property for a period under section 8 - 1 of the Income Tax Assessment Act 1997 exceeds the amount of the rental income from that property for that period, the amount of the ordinary income from the property for that period is taken to be nil.