Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 3/3)
Character Range: 4060894–4062302

is acquiring the property as trading stock, the normal consequences of acquiring trading stock follow. In particular, the notional buyer can usually deduct the purchase price.
 (2) If the property is not trading stock, the notional buyer may be able to deduct amounts for the expenditure under Division 40 (about capital allowances).

Effect of notional loan
 (3) The notional buyer may be able to deduct notional interest payments over the period of the loan.

Other effects
 (4) These effects displace the income tax consequences that would otherwise arise from the arrangement. For example, the notional buyer cannot deduct the actual payments to the notional seller.

Subdivision 240‑A—Application and scope of Division

Table of sections

Operative provisions
240‑10 Application of this Division
240‑15 Scope of Division

Operative provisions

240‑10  Application of this Division
  An *arrangement is treated as a notional sale and notional loan if:
 (a) the arrangement is listed in the table below; and
 (b) the arrangement relates to the kind of property listed in the table; and
 (c) any conditions listed in the table are satisfied.
Special provisions that apply to particular arrangements are also listed in the table.

This Division applies to:
                           *Arrangements of this kind:  That relate to this kind of property:  If these conditions are satisfied:  Special provisions: