Document ID: chunk:federal_register_of_legislation:C2010C00602:clause:7_8:p3
Version: federal_register_of_legislation:C2010C00602
Segment Type: clause
Provision Reference: sch 7 cl 8 (pt 3/5)
Character Range: 19920–22652

of the partners for the BAE year and a roll‑over is chosen for each variation—the partnerships concerned.

Asset first used by transferee

 (3) If the asset was first used or *installed ready for use by the transferee:
 (a) the transferor cannot deduct anything for the asset for the BAE year; and
 (b) the amount that can be deducted under subsection 328‑180(1) or 328‑190(2) for the asset for the BAE year is:
 (i) deductible by the transferee; or
 (ii) if there are 2 or more variations in the constitution of a relevant partnership or in the interests of the partners for the BAE year and a roll‑over is chosen for each variation—split equally between the partnerships concerned (except ones that did not use the asset or have it installed ready for use).

Example: To continue the example from section 328‑247, the transferee buys a low‑cost asset on the 150th day of the BAE year for $800.

 On the 250th day of the year, Evan joins the transferee partnership. The new transferee partnership becomes an STS taxpayer for the BAE year, and a further roll‑over is chosen.

 The original transferor cannot deduct anything for the asset. The original transferee (now a transferor) and the new transferee can deduct $400 each.

Special rule for low‑cost assets

 (4) Subsection (5) applies if:
 (a) the transferor started to use, or have *installed ready for use, a *low‑cost asset during the BAE year; and
 (b) a *balancing adjustment event occurs for that asset before the BAE day.

 (5) The transferee cannot deduct anything for the asset for the BAE year, and subsection 328‑215(4) does not apply to the transferee in relation to the asset.

328‑253  Deductions for cost addition amounts

 (1) This section applies in working out the amount that the transferor or transferee can deduct for the BAE year under subsection 328‑180(2) or 328‑190(3) for expenditure incurred by the transferor or transferee during the BAE year that is included in the second element of the *cost of a depreciating asset.

Expenditure incurred by transferor

 (2) If the expenditure was incurred by the transferor, the amount that can be deducted under subsection 328‑180(2) or 328‑190(3) for the BAE year is split equally between:
 (a) the transferor and the transferee; or
 (b) if there are 2 or more variations in the constitution of a relevant partnership or in the interests of the partners for the BAE year and a roll‑over is chosen for each variation—the partnerships concerned.

Expenditure incurred by transferee

 (3) If the expenditure was incurred by the transferee:
 (a) the transferor cannot deduct anything for the expenditure for the BAE year; and
 (b) the amount that can be deducted under subsection 328‑180(1) or 328‑190(2) for