Document ID: chunk:federal_register_of_legislation:C2004A00684:clause:1_3:p4
Version: federal_register_of_legislation:C2004A00684
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/5)
Character Range: 9328–11862

owned or leased by another partner that are not partnership assets and used in carrying on the activity in that year.

35‑30  Assessable income test

  The rule in section 35‑10 does not apply to a *business activity for an income year if:
 (a) the amount of assessable income from the business activity for the year; or
 (b) you started to carry on the business activity, or stopped carrying it on, during the year—a reasonable estimate of what would have been the amount of that assessable income if you had carried on that activity throughout the year;
is at least $20,000.

35‑35  Profits test

 (1) The rule in section 35‑10 does not apply to a *business activity (except an activity carried on by one or more individuals as partners, whether or not some other entity is a member of the partnership) for an income year (the current year) if, for each of at least 3 of the past 5 income years (including the current year) the sum of the deductions attributable to that activity for that year (apart from the operation of subsection 35‑10(2)) is less than the assessable income from the activity for that year.

 (2) For a *business activity you carried on with one or more others as partners, the rule in section 35‑10 does not apply to you for the current year if, for each of at least 3 of the past 5 income years (including the current year) the sum of your deductions (including your share of the partnership deductions) attributable to that activity for that year (apart from the operation of subsection 35‑10(2)) is less than your assessable income (including your share of the partnership's assessable income) from the activity for that year.

35‑40  Real property test

 (1) The rule in section 35‑10 does not apply to a *business activity for an income year if the total *reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000.

 (2) You may use the market value of the real property or interest if that value is more than its *reduced cost base.

 (3) The *reduced cost base or market value is worked out:
 (a) as at the end of the income year; or
 (b) if you stopped carrying on the *business activity during the year:
 (i) as at the time you stopped; or
 (ii) if you disposed of the asset before that time in the course of stopping carrying on the activity—as at the time you disposed of it.

 (4) However, these assets are not counted for this test:
 (a) a *dwelling, and any adjacent land used in association with