A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 1 - INTRODUCTION AND CORE PROVISIONS  

PART 1-3 - CORE PROVISIONS  

Division 8 - Deductions  

SECTION 8-1  General deductions  

 ITAA 36

8-1(1)  

You can deduct from your assessable income any loss or outgoing to the extent that:


(a) it is incurred in gaining or producing your assessable income; or


(b) it is necessarily incurred in carrying on a *business for the purpose of gaining or producing your assessable income.

Note:

Division 35 prevents losses from non-commercial business activities that may contribute to a tax loss being offset against other assessable income.

History

S 8-1(1) amended by No 90 of 2000.

8-1(2)  

However, you cannot deduct a loss or outgoing under this section to the extent that:


(a) it is a loss or outgoing of capital, or of a capital nature; or


(b) it is a loss or outgoing of a private or domestic nature; or


(c) it is incurred in relation to gaining or producing your *exempt income or your *non-assessable non-exempt income; or
 View history reference


(d) a provision of this Act prevents you from deducting it.

For a summary list of provisions about deductions, see section 12-5.

History

S 8-1(2) amended by No 66 of 2003.

8-1(3)  

A loss or outgoing that you can deduct under this section is called a general deduction.

For the effect of the GST in working out deductions, see Division 27.

Note:

If you receive an amount as insurance, indemnity or other recoupment of a loss or outgoing that you can deduct under this section, the amount may be included in your assessable income: see Subdivision 20-A.

History

S 8-1(3) amended by No 41 of 2005, No 78 of 2001, No 176 of 1999 and No 16 of 1998.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page