Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_2:p4
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/5)
Character Range: 73266–75946

event occurred.

Note: There is a different calculation if you had used different car expense methods for a car: see section 40‑370.

 (3) The *adjustable value of a *depreciating asset you *hold after this section applies to it is then zero.

 (4) However, subsection (3) does not apply to a *depreciating asset for which you have a *cost under item 3 or 4 of the table in subsection 40‑180(2). Instead, the asset's *opening adjustable value for the income year (the later year) after the one in which the *balancing adjustment event occurred is that cost plus any amounts included in the second element of that cost after the event occurred and before the start of the later year.

Note: Those items deal with a case where a balancing adjustment event happens because you still hold an asset you expected not to use.

40‑290  Reduction for non‑taxable use

 (1) You must reduce the amount (the balancing adjustment amount) included in your assessable income, or the amount you can deduct, under section 40‑285 for a *depreciating asset if your deductions for the asset have been reduced under section 40‑25.

 (2) The reduction is:
where:

sum of reductions is the sum of:
 (a) the reductions in your deductions for the asset under section 40‑25; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the reductions in deductions for the asset for the transferor or an earlier successive transferor under section 40‑25; and
 (c) if you *hold the asset as the *legal personal representative of an individual—the reductions in deductions for the asset for the individual under section 40‑25.

total decline is the sum of:
 (a) the decline in value of the *depreciating asset since you started to *hold it; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the decline in value of the asset for the transferor or an earlier successive transferor; and
 (c) if you *hold the asset as the *legal personal representative of an individual—the decline in value of the asset for the individual.

 (3) You must further reduce the amount included in your assessable income, or the amount you can deduct, under section 40‑285 for a *depreciating asset (the current asset) if:
 (a) the asset's *cost (for you) was worked out under section 40‑205 (Cost of a split depreciating asset) or 40‑210 (Cost of merged depreciating assets); and
 (b) you used the depreciating asset from which the current asset was split, or a depreciating asset that was merged into the current asset, or had it *installed ready for use, for a purpose other than a *taxable purpose.

 (4) The further reduction is such amount as is reasonable having regard to the