52Loss on property acquired for profit‑making

52  Loss on property acquired for profit‑making  (1AA) This section does not apply to a loss arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income. Note: Section 25‑40 (Loss from profit‑making scheme) of the Income Tax Assessment Act 1997 deals with such a loss.  (1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.  (1) Any loss incurred by the taxpayer in the year of income upon the sale of any property or from the carrying on or carrying out of any undertaking or scheme, the profit (if any) from which sale, undertaking or scheme would have been included in the taxpayer’s assessable income, shall be an allowable deduction: Provided that, in respect of property acquired by the taxpayer after the date of the commencement of this proviso, no deduction shall be allowable under this section (except where the Commissioner, being satisfied that the property was acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme, otherwise directs) unless the taxpayer, not later than the date upon which he or she lodges his or her first return under this Act after having acquired the property, notifies the Commissioner that the property has been acquired by the taxpayer for the purpose of profit‑making by sale or for the carrying on or carrying out of any profit‑making undertaking or scheme.  (a) a taxpayer sells property (in this subsection referred to as the relevant property) that is deemed by subsection 25A(5) or (8) to have been acquired by the taxpayer for the purpose of profit‑making by sale;  (b) the Commissioner is satisfied that the relevant property has not been held or used by the taxpayer in a manner inconsistent with such a purpose; and  (c) the Commissioner, having regard to:  (i) the amount of the consideration paid by the person who transferred the relevant property or, in a case to which subsection 25A(8) applies, the property referred to in paragraph 25A(8)(b), to the taxpayer in respect of the purchase of the property so transferred; and  (ii) such other matters as the Commissioner considers relevant;   considers that it is appropriate that a loss be deemed to be incurred by the taxpayer upon the sale of the relevant property; the taxpayer shall be deemed, for the purposes of this section, to have incurred a loss upon the sale of the relevant property of such amount as the Commissioner considers appropriate.  (3) Except as provided by subsection (2), a deduction is not allowable to a taxpayer under this section in respect of a loss incurred upon a sale of property to which paragraph (2)(a) applies.  (a) a loss is incurred by a taxpayer upon the sale of property (in this subsection referred to as the relevant property); and  (b) the taxpayer is deemed to have acquired the relevant property for the purpose of profit‑making by sale by virtue of the application of subsection 25A(6) in accordance with subparagraph (b)(ii) of that subsection; the deduction that would, but for this subsection, be allowable to the taxpayer under subsection (1) in respect of the loss shall be reduced by such amount (if any) as the Commissioner considers reasonable having regard to the extent to which the relevant property is attributable to the interest in property that was acquired by the taxpayer for the purpose of profit‑making by sale as mentioned in that subparagraph.  (5) A deduction is not allowable to a taxpayer under subsection (1) in respect of a loss incurred by the taxpayer upon the sale of property if:  (a) the sale is a transfer in the prescribed manner by the taxpayer for the purposes of section 25A; or  (b) the property is deemed by subsection 25A(2) to have been acquired by the taxpayer for the purposes of profit‑making by sale and was not actually acquired by the taxpayer for that purpose.