Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_6:p2
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 2/18)
Character Range: 118806–121633

plant or a grapevine for an income year if:
 (a) for a horticultural plant—its *effective life is 3 years or more and it is destroyed during the income year while you own it and use it for *commercial horticulture; or
 (b) for a grapevine—it is destroyed at any time up to 4 years after the day it was established.

 (2) Work out your deduction as follows:

      Method statement
           Step 1. Work out the total of the amounts you could have deducted under this Subdivision for the *horticultural plant or grapevine for the period:
                  (a) starting when the plant could first be used for *commercial horticulture or when the grapevine was established; and
                  (b) ending when it was destroyed;
            assuming that, during that period, you satisfied a condition in section 40‑525 for the plant or grapevine and used it for commercial horticulture (for a plant) or in a *primary production business for the *purpose of producing assessable income (for a grapevine).
           Step 2. Subtract from the capital expenditure that is attributable to the establishment of the *horticultural plant or grapevine:
                  (a) the result from step 1; and
                  (b) any amount you received (under an insurance policy or otherwise) for the destruction.
            The remaining amount (if any) is your deduction under subsection (1).
 (3) This deduction is in addition to any deduction for the income year under section 40‑545 or 40‑550.

40‑570  How this Subdivision applies to partners and partnerships

 (1) This section applies to allocate expenditure to you for the purposes of this Subdivision if you were a partner in a partnership when it incurred capital expenditure during an income year.

 (2) For the purposes of this Subdivision, you are taken to have incurred during that income year:
 (a) the amount of the expenditure that the partners agreed you should bear; or
 (b) if there was no such agreement—the proportion of the expenditure equal to the proportion of your individual interest in the net income or partnership loss of the partnership for that income year.

 (3) Disregard this Subdivision when working out the net income or partnership loss of the partnership under section 90 of the Income Tax Assessment Act 1936.

40‑575  Getting tax information if you acquire a horticultural plant or grapevine

 (1) If you begin to satisfy a condition in section 40‑525 for a *horticultural plant or a grapevine, you may give the last entity (if any) that satisfied such a condition for the plant or grapevine a written notice requiring the entity to give you any or all of the following information:
 (a) the amount of establishment expenditure for the plant or grapevine;
 (b) for a horticultural plant—its *effective life and the day on which it could first