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DB 13: Repayment of debt in certain circumstances
or “When someone pays off your debt, you may be able to claim a tax deduction”
You could also call this:

“Deductions allowed for losses covered by security payments”

If you receive a security payment for a loss, and no other part of this Act lets you deduct that loss, you can deduct the loss. The amount you can deduct is worked out in section EW 51(2).

If you get a security payment for losing shares, as described in section DB 24, and you meet all the requirements in that section, and no other part of this Act lets you deduct that loss, you can deduct the share loss. The amount you can deduct is worked out in section EW 51(4).

This rule adds to the general permission and overrides all the general limitations in the Act. This means you can use this deduction even if other parts of the Act might say you can’t.

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Next up: DB 15: Sureties

or “Rules for tax deductions when you guarantee someone else's debt”
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Part D Deductions
Specific rules for expenditure types

DB 14Security payment

  1. Subsection (2) applies when—

  2. a person receives a security payment for a loss; and
    1. no other provision of this Act allows the person a deduction for the loss.

      1. The person is allowed a deduction for the loss quantified in section EW 51(2) (Deduction for security payment).

      2. Subsection (4) applies when—

      3. a person receives a security payment for a share loss as described in section DB 24; and
        1. the requirements of section DB 24 are met; and
          1. no other provision of this Act allows the person a deduction for the loss.

            1. The person is allowed a deduction for the share loss quantified in section EW 51(4).

            2. This section supplements the general permission and overrides all the general limitations.

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