Page 2 - F6 - Capital Gains Tax - Debt Reduction
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Recoupments – Reduction/Cancellation Of


                                                         Debt (s 19)










           When will s 19 be applicable?



           amount
        owing to or                         debt that is owed by a person

        by a person

                                                is reduced by any amount,


                                                                      AND


       the amount of the debt was used, to fund expenditure for which


                                    a deduction/allowance was granted



                   Trading                                            AND                     Allowance

                stock/other                                                                       assets

                reduction of the debt > consideration for the reduction







            S19 N/A if debt reduction is a bequest, donation/taxable fringe benefit
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