Document ID: chunk:federal_register_of_legislation:C2012A00023:clause:3_3
Version: federal_register_of_legislation:C2012A00023
Segment Type: clause
Provision Reference: sch 3 cl 3
Character Range: 19749–21141

3  After section 328‑235
Insert:

Special rules for certain motor vehicles

328‑237  Special deduction for certain motor vehicles
 (1) This section applies to a *depreciating asset that is a *motor vehicle if:
 (a) in an income year (the start year) you start to use the asset, or have it *installed ready for use, for a *taxable purpose; and
 (b) you were a *small business entity for the start year and the income year in which you started to *hold the asset; and
 (c) you chose to use this Subdivision for each of those years; and
 (d) subsection 328‑180(1) does not provide for your deduction for the depreciating asset for the start year.

Deduction for the start year
 (2) You deduct for the *depreciating asset for the start year the amount worked out under whichever of subsections (3) and (4) applies.
 (3) The amount of your deduction is the *taxable purpose proportion of the *adjustable value of the *depreciating asset at the end of the start year if that proportion of that value is $5,000 or less.
 (4) If that proportion of that value is more than $5,000, the amount of your deduction is the sum of:
 (a) $5,000; and
 (b) 15% of the amount worked out using the formula:

Special deduction denied if low pool value
 (5) Subsection (2) does not apply if section 328‑210 sets your deduction for a *general small business pool for the start year.

Special rules about roll‑overs