Private ruling: Division 40 of the ITAA 1997
Published: December 2011
Ruling period: 1 January 2010 - 31 December 2010 | 1 January 2011 - 31 December 2011 | 1 January 2012 - 31 December 2012 | 1 January 2013 - 31 December 2013
Date scheme commenced: 1 January 2010

Ruling: The taxpayer that is the subject of the ruling will undertake works on a depreciating asset. The works are carried out over a period of time. | Question 1(a) | The ruling concerned whether the works carried out will create a new depreciating asset for the purposes of section 40-30 of the ITAA 1997. | Answer 1(a) | The Commissioner ruled that the works carried out will create a new depreciating asset for the purposes of section 40-30 of the ITAA 1997. | Question 1(b) | The ruling concerned whether the costs of the works constitute a first element of cost for the purposes of section 40-180 of the ITAA 1997. | Answer 1(b) | The Commissioner ruled that the costs of the works constitute a first element of cost for the purposes of section 40-180 of the ITAA 1997. | Question 2(a) | The ruling concerned whether the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997? | Answer 2(a) | No. | Question 2(b) | The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the costs of the works a second element of cost for the purposes of section 40-190 of the ITAA 1997? | Answer 2(b) | Not necessary for the Commissioner to rule. | Question 2(c) | The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the taxpayer is required to recalculate the effective life of the depreciating asset for the purposes of subsection 40-110(3) of the ITAA 1997? | Answer 2(c) | Not necessary for the Commissioner to rule. | Question 2(d) | The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the prime cost method under section 40-75 of the ITAA 1997 be used? | Answer 2(d) | Not necessary for the Commissioner to rule.




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