Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_10:p6
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 6/13)
Character Range: 34568–37113

and
 (c) the asset is not one that is part of a set of assets that you started to hold in that income year where the total cost of the set of assets exceeds $300; and
 (d) the total cost of the asset and any other identical, or substantially identical, asset that you start to hold in that income year does not exceed $300.

40‑85  Meaning of adjustable value and opening adjustable value of a depreciating asset

 (1) The adjustable value of a *depreciating asset at a particular time is:
 (a) if you have not yet used it or had it *installed ready for use for any purpose—its *cost; or
 (b) for a time in the income year in which you first use it, or have it installed ready for use, for any purpose—its cost less its decline in value up to that time; or
 (c) for a time in a later income year—the sum of its *opening adjustable value for that year and any amount included in the second element of its cost for that year up to that time, less its decline in value for that year up to that time.

 (2) The opening adjustable value of a *depreciating asset for an income year is its *adjustable value to you at the end of the previous income year.

Note 1: The opening adjustable value of a depreciating asset is reduced by an amount applied in reduction of deductible expenditure under the debt forgiveness provisions: see section 40‑90.

Note 2: The opening adjustable value of a depreciating asset for which a balancing adjustment event occurs because you still hold the asset and you expect not to use it is affected by subsection 40‑285(4).

40‑90  Debt forgiveness

 (1) This section applies if an amount (the debt forgiveness amount) is applied in reduction of deductible expenditure for a *depreciating asset in an income year (within the meaning of Division 245 of Schedule 2C to the Income Tax Assessment Act 1936) under section 245‑155 of that Schedule.

 (2) The asset's *cost is reduced for that income year by the debt forgiveness amount.

 (3) The asset's *opening adjustable value for that income year is reduced by the debt forgiveness amount if that income year is later than the one in which its *start time occurs.

40‑95  Choice of determining effective life

 (1) You must choose either:
 (a) to use an *effective life determined by the Commissioner for a *depreciating asset under section 40‑100; or
 (b) to work out the effective life of the asset yourself under section 40‑105.

 (2) Your choice of an *effective life determined by the Commissioner for a *depreciating asset is limited to one in force as at:
 (a) the