Document ID: chunk:federal_register_of_legislation:C2010C00679:section:1987:p15
Version: federal_register_of_legislation:C2010C00679
Segment Type: section
Provision Reference: s 1987 (pt 15/51)
Character Range: 48760–51263

"(9) If a female horse has not attained the age of 12 years before the end
of the year of income, then, for the purposes of this section, the reduction
amount in relation to the horse in relation to the year of income is worked
out using the formula:
        Base amount          Holding days in year of income
       _____________   X    ______________________________
       Reducing factor       Total days in year of income
where:
  'Base amount' means whichever is the lesser of:
  (a) the cost price of the horse; or
  (b) the depreciated value of the horse, within the meaning of section 62, at
the time the horse became live stock of the taxpayer;
  'Reducing factor' means whichever is the greater of:
  (a) 3; or
  (b) the difference between 12 and the number of whole years in the age
attained by the horse on the day on which the horse commenced to be held by
the taxpayer for breeding purposes;
  'Holding days in year of income' means:
  (a) if the horse was held by the taxpayer for breeding purposes during the
whole of the year of income - the number of days in the year of income; or
  (b) if the taxpayer commenced to hold the horse for breeding purposes during
the year of income - the number of whole days in so much of the year of income
as occurred after that commencement;
  'Total days in year of income' means the number of days in the year of
income.
(Age of horse)
  "(10) For the purposes of this section, the time when a horse attains a
particular age expressed in years is the commencement of the relevant
anniversary of the birth date of the horse.
(Horse becoming live stock more than once before end of year of income)
  "(11) For the purposes of this section, if a horse becomes live stock of the
taxpayer more than once before the end of the year of income, the horse is
taken to have become live stock of the taxpayer on the last occasion before
the end of the year of income on which it became live stock of the taxpayer.
(Horse commencing to be held for breeding purposes more than once before end
of year of income)
  "(12) For the purposes of this section, if the taxpayer commences to hold a
horse for breeding purposes more than once before the end of the year of
income, the taxpayer is taken to have commenced to hold the horse for breeding
purposes on the last occasion before the end of the year of income on which
the taxpayer commenced to hold the horse for breeding purposes.
(Definitions)
  "(13) In this section:
  'birth date':
  (a) in relation to a