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EW 50: Income when debt forgiven to trustee
or “Trust may owe tax when forgiven debt is distributed to non-beneficiaries”
You could also call this:

“Rules for claiming tax deductions on security payments”

If you’re allowed to take money off your taxes because of a security payment, there are some rules you need to follow. These rules are about how much you can take off.

If you’re allowed to take money off under [section DB 14(2)], you can only take off as much as the security payment was. This means if your security payment was $100, you can’t take off more than $100.

The same rule applies if you’re allowed to take money off under [section DB 14(4)]. Again, you can only take off as much as the security payment was. So if your security payment was $50, you can’t take off more than $50.

Remember, these rules are there to make sure you don’t take off more than you’re supposed to. They help keep things fair for everyone.

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Next up: EW 52: Share supplier under share-lending arrangement

or “Rules for lending shares you've acquired through a financial arrangement”
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Part E Timing and quantifying rules
Financial arrangements rules: Consideration when anti-avoidance provision applies

EW 51Deduction for security payment

  1. Subsection (2) applies when a person is allowed a deduction under section DB 14(2) (Security payment).

  2. The person is allowed a deduction no greater than the amount of the security payment.

  3. Subsection (4) applies when a person is allowed a deduction under section DB 14(4).

  4. The person is allowed a deduction no greater than the amount of the security payment.

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