Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 1/9)
Character Range: 337408–340120

6                                                 Section 20‑150 reduced the amount to be included in another entity's assessable income in respect of such an earlier disposal by the other entity                                                the amount of the reduction

Examples: Your associate leases a car for 5 years and then acquires it. Your associate disposes of it to you and section 20‑110 includes $500 in your associate's assessable income.
 You later dispose of the car.
 In working out the amount to include in your assessable income for your disposal, you can reduce each limit in subsection 20‑125(2) by $500 because the disposal by your associate occurred after the lease period began.
 Contrast this case:
 You lease a car for 5 years and then acquire it. You dispose of it to another entity and section 20‑110 includes $1,000 in your assessable income.
 You lease the car from that entity for 2 years and then acquire it. You later dispose of it.
 In working out the amount to include in your assessable income in respect of the second lease, you cannot reduce each limit in subsection 20‑110(2) by $1,000 because the first disposal did not occur after the start of that lease.
Note: If the earlier disposal occurred in the 1996‑97 income year or an earlier income year, each limit may be able to be reduced by a further amount: see section 20‑115 of the Income Tax (Transitional Provisions) Act 1997.

Miscellaneous rules

20‑145  No amount included if you inherited the car
  You do not include an amount in your assessable income because of the disposal if you inherited the *car.

20‑150  Reducing the amount to be included if another provision requires you to include an amount for the disposal
  The amount to be included in your assessable income because of the disposal is reduced by any amount that another provision of this Act (except sections 40‑285 and 40‑370) requires you to include in your assessable income because of the disposal.
Note: sections 40‑285 and 40‑370 are about including an amount after making a balancing adjustment on the disposal of a car.

20‑155  Exception for particular cars taken on hire
  This Subdivision does not apply to these kinds of leases:
 (a) letting a *car on hire under a *hire purchase agreement; or
 (b) letting a *car on hire under an agreement of a kind ordinarily entered into by people who take cars on hire intermittently on an hourly, daily, weekly or monthly basis.

20‑157  Exception for small business entities
  This Subdivision does not apply to you if, at any time in the income year in which you disposed of the *car, it was allocated to a pool of yours under Division 328.

Disposals of interests in a car: special rules apply