Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 2/4)
Character Range: 322344–325012

the loss or outgoing are reversed in the assessment year as follows:
 (a) the amounts by which deductions are reversed total the assessable amount (unless all the deductions have been reversed);
 (b) a deduction for an income year is not reversed until all deductions for earlier income years have been reversed;
 (c) a deduction is not reversed in the assessment year to the extent that it has already been reversed in an earlier year;
 (d) if each of 2 or more entities can deduct an amount for the loss or outgoing for the same income year, those deductions are reversed in the assessment year by amounts proportionate to the amounts of the deductions.

Subdivision 20‑B—Disposal of a car for which lease payments have been deducted

Guide to Subdivision 20‑B

20‑100  What this Subdivision is about

      This Subdivision reverses the effect of deductions for lease payments for a car leased to you (or to your associate), but only if you make a profit by disposing of the car after acquiring it from the lessor. The smallest of these amounts is included in your assessable income:
           your profit on the disposal;
           the total deductible lease payments for the period of the lease;
           the total amounts you could have deducted for the car's decline in value if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income.

Table of sections
20‑105 Map of this Subdivision

The usual case
20‑110 Disposal of a leased car for profit
20‑115 Working out the profit on the disposal
20‑120 Meaning of notional depreciation

The associate case
20‑125 Disposal of a leased car for profit

Successive leases
20‑130 Successive leases

Previous disposals of the car
20‑135 No amount included if earlier disposal for market value
20‑140 Reducing the amount to be included if there has been an earlier disposal

Miscellaneous rules
20‑145 No amount included if you inherited the car
20‑150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20‑155 Exception for particular cars taken on hire
20‑157 Exception for small business entities

Disposals of interests in a car: special rules apply
20‑160 Disposal of an interest in a car

20‑105  Map of this Subdivision

The usual case

20‑110  Disposal of a leased car for profit
 (1) Your assessable income includes the *profit you make on disposing of a *car if:
 (a) the car was designed mainly for carrying passengers; and
 (b) the car was leased to you and has been leased to no‑one else; and
 (c) you or another entity can deduct for the income year any of the lease payments paid or payable by