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Alan, We have a case where there was a debt write off in September 2013 regarding a commercial building. The owner now intends to dispose of the property. We note from F(no.2)A 2013 that the base cost of an asset which has been funded from borrowed monies is reduced according to the amount of debt released. The relevant section (S42) refers to release of debt in whole or in part after 1/1/2014. Based on the latter it would appear that no adjustment would apply to the cost as it occurred prior to the date. Could Revenue insist on Income Tax treatment on any write-offs prior to the date albeit it never seemed to be formally addressed. I would be obliged for your comments. Many thanks, Mary

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Asked on 7 July 2014 4:36 pm