Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p41
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 41/54)
Character Range: 1191137–1193755

area was used only partly for the *purpose of producing assessable income; or
 (b) for any other capital works—*your area was used only partly for the *purpose of producing assessable income or conducting *R&D activities.
Note: This Step applies if:
• part of your income from the capital works is exempt income; or
• part of the capital works were not used for the purpose of producing assessable income or were not available for that use; or
• the capital works were not used for such a purpose during a part of the days used period.
  Step 4  The amount of your deduction is the lesser of your Step 3 amount or the *undeducted construction expenditure for *your area.

43‑220  Capital works taken to have begun earlier for certain purposes
 (1) A building, other than a *hotel building or an *apartment building, or an extension, alteration or improvement to such a building, begun after 15 September 1987 is taken to have begun before 16 September 1987 if:
 (a) the construction was under a contract that was entered into before 16 September 1987, or was under 2 or more contracts any of which was entered into before that date; or
 (b) money was borrowed for a purpose that included the purpose of financing the construction under a contract or contracts entered into before 16 September 1987 by an entity that was, or by entities each of which was, a *qualifying investor, and that money was used to finance the construction.
 (2) An entity is a qualifying investor for the construction of a building if:
 (a) at the end of 15 September 1987, the entity was the owner or lessee of the land on which the building was constructed; or
 (b) the entity became the owner or lessee of the land under a contract entered into before 16 September 1987.
 (3) An entity is a qualifying investor for the construction of an extension, alteration or improvement to a building if:
 (a) at the end of 15 September 1987, the entity was the owner or lessee of the building, or the part of the building to which the extension, alteration or improvement was made; or
 (b) the entity became the owner or lessee of the building or that part under a contract entered into before 16 September 1987.

Subdivision 43‑G—Undeducted construction expenditure

Guide to Subdivision 43‑G

43‑225  What this Subdivision is about

      The undeducted construction expenditure for your area is the part of your construction expenditure you have left to write off. It is used to work out:
          • the number of years in which you can deduct amounts for your construction expenditure; and
          • the amount that you can deduct under section