CLAW3201 Final notes

Taxation law – Final Notes General Deductions Section 8-­‐1(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.

(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

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Nexus: o Logical: is outgoing related to that income generating activity? o Temporal: before, during and after