Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 4/9)
Character Range: 344989–347686

nature.
Example: Under this section, you can deduct expenditure you incur in applying for a private ruling on whether you can depreciate an item of property.

Use of property taken to be for income producing purpose
 (5) Under some provisions of this Act it is important to decide whether you used property for the *purpose of producing assessable income. For provisions of that kind, your use of property is taken to be for that purpose insofar as you use the property for:
 (a) managing your *tax affairs; or
 (b) complying with an obligation imposed on you by a *Commonwealth law, insofar as that obligation relates to the *tax affairs of another entity.
Example: You buy a computer to prepare your tax returns. The expenditure you incur in buying the computer is capital expenditure and cannot be deducted under this section.
 However, to the extent that you use the computer in preparing your income tax return, you will be able to deduct the decline in value of your computer under Division 40. That is because, under this subsection, the computer is property that you are taken to use for the purpose of producing assessable income.
 (6) If another provision of this Act expressly provides that a particular use of property is not taken to be for the *purpose of producing assessable income, that provision overrides subsection (5).

No double deduction for general interest charge on a running balance account
 (7) If you deduct *general interest charge that applies to an RBA deficit debt, you can't also deduct the corresponding general interest charge on *tax debts that have been allocated to the RBA.
Note: RBAs (running balance accounts) are dealt with in Part IIB of the Taxation Administration Act 1953.

Expenditure by trustee of deceased estate
 (8) If:
 (a) after you die, the trustee of your deceased estate incurs expenditure; and
 (b) had you incurred the expenditure before you died, you could have deducted it under subsection (1);
for the purposes of assessing the trustee for the income year in which you died, the expenditure is a deduction under that subsection.

25‑10  Repairs
 (1) You can deduct expenditure you incur for repairs to premises (or part of premises) or a *depreciating asset that you held or used solely for the *purpose of producing assessable income.

Property held or used partly for that purpose
 (2) If you held or used the property only partly for that purpose, you can deduct so much of the expenditure as is reasonable in the circumstances.

No deduction for capital expenditure
 (3) You cannot deduct capital expenditure under this section.

25‑15  Amount paid for lease obligation to repair
  You can deduct an amount that you pay for failing