Private ruling: Depreciation
Published: November 2014

Ruling: Q1: Does the Commissioner agree that the assets purchased by Company A from Company B under a contract are assets to which Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997) applies pursuant to section 40-10 and section 40-12 of the Income Tax (Transitional Provisions) Act 1997 ? | A1: Yes. | Q2: If the Commissioner agrees with Question 1, does the Commissioner agree that the depreciable cost of the assets for the purposes of Division 40 (section 40-175) of the ITAA 1997 is the purchase price stated in the contract? | A2: Yes. | Q3: Does the Commissioner agree that Company A can deduct the decline in value of each of the assets acquired from Company B in accordance with section 40-25 of the ITAA 1997? | A3: Yes.




Subject: Depreciation: The Commissioner issued a ruling on the depreciation of assets purchased by Company A from Company B under contract.