Income Tax Assessment Act 1997
20‑50 If the expense is only partially d20‑50 If the expense is only partially deductible
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20‑50 If the expense is only partially deductible
(1) This section extends the operation of section 20‑35 or 20‑40 (as appropriate) to a case where the total of what you can deduct under a provision (the deduction provision) for a loss or outgoing is limited to a proportion of the loss or outgoing. (2) If you receive an *assessable recoupment of the loss or outgoing, section 20‑35 or 20‑40 applies as if: (a) you had incurred only that proportion of the loss or outgoing, but could deduct the whole of that proportion under the deduction provision; and (b) you had received only that proportion of the recoupment.
Note: Example: You incur expenditure of $500. A provision listed in section 20‑30 entitles you to deduct 10% of the expenditure ($50) over 5 years. This means you can deduct $10 in each of the 5 years.
Note: You recoup $300 of the expenditure. This section treats you as receiving only 10% of the recoupment. Therefore, $30 is dealt with by section 20‑40.