Document ID: chunk:federal_register_of_legislation:C2024C00267:section:2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 2
Character Range: 221240–222724

2                                     The entity chooses, under section 58‑20, that depreciation deductions and balancing adjustments are to be calculated by reference to the undeducted pre‑existing audited book value of plant  (a) section 45‑5 has effect as if paragraph 45‑5(2)(b) were omitted and replaced by paragraph 58‑145(8)(a); and
                                                                                                                                                                                                                                    (b) section 45‑10 has effect as if paragraph 45‑10(2)(b) operated on that part of the amount worked out under paragraph 58‑145(8)(a) that has been or would be reflected in the entity's interest in the partnership net income or partnership loss if that amount were an amount deducted for depreciation of the plant.

 (2) There are the consequences set out in this table for an entity that:
 (a) acquired the plant from a tax exempt vendor in connection with the acquisition of a business; and
 (b) disposes of the plant, interest in plant or interest (or part) in a partnership to an entity specified in subsection (3).

Consequences for transition entities
Item                                  In this situation:                                                                                                                                                                             There are these consequences: