Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p39
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 39/54)
Character Range: 1186668–1189069

deduction for your area depending on the way you use it.
  If 2 rates apply, there will be a separate calculation for the part of *your area used in the way described in Table 43‑140 and for the part of *your area used in the way described in Table 43‑145 (Use in the 4% manner). A gross deduction and subsequent reduction is calculated for each.
  The reduction is the same as the second reduction for capital works begun before 27 February 1992.

Operative provisions

43‑210  Deduction for capital works begun after 26 February 1992
  Step 1  Calculate the amount worked out using the formula:
where:
portion of your CE is the portion of *your construction expenditure that is attributable to the part of *your area that you used in the *4% manner.
days used is the number of days in the income year that:
 (a) you owned or were the lessee of that part of *your area and used it in the *4% manner; or
 (b) you were the holder of that part of *your area under a *quasi‑ownership right over land granted by an *exempt Australian government agency or an *exempt foreign government agency, and used that part of your area in the 4% manner.
  Step 2  Reduce the Step 1 amount by the extent to which the part referred to in Step 1 was used only partly for the *purpose of producing assessable income.
Note: This Step applies if:
• part of your income from the part referred to in Step 1 is exempt income; or
• part of the part referred to in Step 1 was not used for the purpose of producing assessable income or was not available for that use; or
• the part of the part referred to in Step 1 was not used for such a purpose during a part of the days used period.
  Step 3  Calculate the amount worked out using the formula:
where:
portion of your CE is the portion of *your construction expenditure that is attributable to the part of *your area that you did not use in the *4% manner but was used as described in Table 43‑140 (Current year use).
days used is the number of days in the income year that:
 (a) you owned or were the lessee of that part of *your area and used it in that manner; or
 (b) you were the holder of that part of *your area under a *quasi‑ownership right over land granted by an *exempt Australian government agency or an *exempt foreign government agency, and used that part of your area in that manner.
  Step 4  Reduce the Step 3 amount by the extent to which the part referred