Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/9)
Character Range: 963029–965782

was worked out under section 40‑205 (Cost of a split depreciating asset) or 40‑210 (Cost of merged depreciating assets); and
 (b) you used the depreciating asset from which the current asset was split, or a depreciating asset that was merged into the current asset, or had it *installed ready for use, for a purpose other than a *taxable purpose.
 (4) The further reduction is such amount as is reasonable having regard to the extent of the use referred to in paragraph (3)(b).

Exception: mining, quarrying or prospecting information
 (5) This section does not apply to *mining, quarrying or prospecting information.

40‑291  Reduction for second‑hand assets used in residential property
 (1) In addition to section 40‑290, you must reduce the amount (the balancing adjustment amount) included in your assessable income, or that you can deduct, under section 40‑285 for a *depreciating asset if your deductions for the asset have been reduced under section 40‑27.
 (2) The reduction is the following, as increased under subsection (3) if applicable:
where:
sum of section 40‑27 reductions is the sum of:
 (a) the reductions in your deductions for the asset under section 40‑27; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the reductions in deductions for the asset for the transferor or an earlier successive transferor under section 40‑27; and
 (c) if you *hold the asset as the *legal personal representative of an individual—the reductions in deductions for the asset for the individual under section 40‑27.
total decline is the sum of:
 (a) the decline in value of the *depreciating asset since you started to *hold it; and
 (b) if there has been roll‑over relief for the asset under section 40‑340—the decline in value of the asset for the transferor or an earlier successive transferor; and
 (c) if you hold the asset as the *legal personal representative of an individual—the decline in value of the asset for the individual.
 (3) If:
 (a) the *cost (for you) of the asset (the current asset) was worked out under section 40‑205 (Cost of a split depreciating asset) or 40‑210 (Cost of merged depreciating assets); and
 (b) you used the *depreciating asset from which the current asset was split, or a depreciating asset that was merged into the current asset, or had it *installed ready for use, for the purpose to which paragraphs 40‑27(2)(a) and (b) relate;
the reduction includes an increase equal to such amount as is reasonable having regard to the extent of the use referred to in paragraph (b) of this subsection.

40‑292  Adjustments—assets used for both general tax purposes and R&D activities
 (1) This section applies if:
 (a) a *balancing adjustment event happens in an income year (the event year)