Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_2:p1
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/5)
Character Range: 65892–68544

2                                                   You received the benefit under an *arrangement that was private or domestic in nature to you               The *market value of the benefit when you received it

40‑195  Apportionment of cost

  If you pay an amount for 2 or more things that include at least one *depreciating asset, or that include a contribution to bringing a depreciating asset to its present condition and location, you take into account as part of its *cost only that part of what you paid that is reasonably attributable to the asset.

Example: Ian buys 3 assets (one depreciating asset and 2 other assets) under the one transaction. He pays $30,000 for the 3 assets. $25,000 of that amount is reasonably attributable to the depreciating asset.

 The first element of the depreciating asset's cost is $25,000.

40‑200  Exclusion from cost

  The *cost of a *depreciating asset that is not *plant does not include any amount that was incurred:
 (a) before 1 July 2001; or
 (b) under a contract entered into before that day.

40‑205  Cost of a split depreciating asset

  If you split a *depreciating asset into separate assets as mentioned in section 40‑115, the first element of the cost of each of the separate assets is a reasonable proportion of the sum of these amounts:
 (a) the *adjustable value of the original asset just before it was split; and
 (b) the amount you are taken to have paid under section 40‑185 for any economic benefit involved in splitting the original asset.

Example: Barry owns a spectrum licence that covers 3 areas: Area A, area B and area C. The licence has an adjustable value of $160,000. He sells area A to Chris, and his costs of splitting are $10,000. Barry is taken to have split the licence into 2 assets.

 On the basis of their relative market values, Barry apportions $170,000 to area A (that he disposed of) and to the licence he still holds for areas B and C.

40‑210  Cost of merged depreciating assets

  If a *depreciating asset or assets that you *hold is or are merged into another depreciating asset as mentioned in section 40‑125, the first element of the cost of the merged asset is a reasonable proportion of the sum of:
 (a) the *adjustable value or adjustable values of the original asset or assets just before the merger; and
 (b) the amount you are taken to have paid under section 40‑185 for any economic benefit involved in merging the original asset or assets.

40‑215  Adjustment: double deduction

 (1) Each element of the *cost of a *depreciating asset is reduced by any portion of that element of cost that you have deducted or can deduct, or that has been or