Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_4:p9
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 9/9)
Character Range: 108058–110066

(c) a grapevine.

Note 1: Sections 40‑540, 40‑545 and 40‑550 show you how to work out the decline.

Note 2: Generally, only one taxpayer can deduct amounts for a depreciating asset. However, if you and another taxpayer jointly hold the asset, each of you deduct amounts for it: see section 40‑35.

Conditions

 (2) However, the applicable condition in section 40‑525 must be satisfied for the *depreciating asset.

Limit on deduction

 (3) You cannot deduct more in total than the amount of capital expenditure incurred on the *depreciating asset.

Reduction of deduction: water facilities

 (4) You must reduce your deduction for a *water facility for an income year by the part of the facility's decline in value that is attributable to the period (if any) in the income year when it was:
 (a) not wholly used in carrying on a *primary production business on land in Australia; or
 (b) not wholly used for a *taxable purpose.

40‑520  Meaning of water facility and horticultural plant

 (1) A water facility is *plant or a structural improvement, or an alteration, addition or extension to plant or a structural improvement, that is primarily and principally for the purpose of conserving or conveying water.

Example: Examples of a water facility include a dam, tank, tank stand, bore, well, irrigation channel, pipe, pump, water tower and windmill.

 (2) A horticultural plant is a live plant or fungus that is cultivated or propagated for any of its products or parts.

40‑525  Conditions

Water facilities

 (1) The capital expenditure you incurred on the construction, manufacture, installation or acquisition of the *water facility must have been incurred primarily and principally for the purpose of conserving or conveying water for use in a *primary production business that you conduct on land in Australia.

Horticultural plants

 (2) One of the conditions in this table must be satisfied:

Conditions relating to horticultural plants
Item                                         Condition