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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME    View history reference

Division 20 - Amounts included to reverse the effect of past deductions    View history reference

Subdivision 20-A - Insurance, indemnity or other recoupment for deductible expenses    View history reference

How much is included in your assessable income?

SECTION 20-35  If the expense is deductible in a single income year  

 View history reference ITAA 36

20-35(1)  

Your assessable income includes an *assessable recoupment of a loss or outgoing if:


(a) you can deduct the whole of the loss or outgoing for the *current year; or


(b) you have deducted or can deduct the whole of the loss or outgoing for an earlier income year.

Note 1:

The operation of this section may be affected if a balancing charge has been included in your assessable income because of a deduction for the loss or outgoing: see section 20-45.

Note 2:

Recoupment of a loss or outgoing for which you can deduct amounts over more than one income year is covered by section 20-40.

Note 3:

Recoupment of a loss or outgoing that is only partially deductible is covered by section 20-50.

Total assessed not to exceed the loss or outgoing

20-35(2)  

The total of all amounts that subsection (1) includes in your assessable income for one or more income years in respect of a loss or outgoing cannot exceed the amount of the loss or outgoing.

Recoupment received before income year of the deduction

20-35(3)  

If:


(a) you can deduct the whole of a loss or outgoing for the *current year; and


(b) before the current year you received an *assessable recoupment of the loss or outgoing;

your assessable income for the current year includes so much of the recoupment as subsection (1) would have included if you had instead received the recoupment at the start of the current year.


 



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