Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 8/20)
Character Range: 1573026–1575616

the ordinary course of *business) or section 70‑105 (because of your death).
(It does not matter when you acquired the land.)
Note: The market value of trees is not included in your assessable income for the income year by section 70‑105 (because of your death) if your legal personal representative elects under subsection 70‑105(4) to have a nil amount included instead.

Right to fell trees
 (3) You can deduct the amount you paid to acquire a right to fell trees if:
 (a) some or all of the trees are felled during the income year for sale, or for use in manufacture, by you for the *purpose of producing assessable income; or
 (b) some or all of the trees are felled during the income year under a right you granted to another entity in consideration of payments as or by way of *royalty.
(It does not matter when you acquired the right.)

How much you can deduct for costs of acquiring land or right
 (4) You can deduct for the income year so much of the amount you paid as is attributable to the trees covered by a paragraph of subsection (2) or (3).
 (5) If you can deduct an amount because of paragraph (2)(c), you can also deduct for the income year so much of any other capital expenditure you incurred as is attributable to acquiring the trees covered by that paragraph (except so far as you have deducted it, or can deduct it, for any income year under a provision of this Act outside this section).

No deduction for carbon sink forests
 (5A) You cannot deduct under this section so much of an amount you paid or incurred as is attributable to the establishment of trees for which any entity has deducted, or can deduct, an amount for any income year under Subdivision 40‑J.

Non‑arm's length transactions
 (6) If:
 (a) you can deduct an amount under this section for expenditure incurred in connection with a transaction; and
 (b) the parties to the transaction did not deal with each other at *arm's length; and
 (c) the amount of the expenditure is greater than the *market value of what the expenditure is for;
the amount of the expenditure is instead taken to be that market value. This has effect for the purposes of working out what you can deduct under this section.

Part 2‑40—Rules affecting employees and other taxpayers receiving PAYG withholding payments

Division 80—General rules

Table of Subdivisions
 Guide to Division 80

Guide to Division 80

80‑1  What this Division is about
      This Division sets out rules that apply throughout the Part. The rules are about holding an office, the termination of employment, the transfer of property and receiving and