Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p8
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 8/21)
Character Range: 18814–21619

second element of cost is worked out under section 40‑190.

 (4) The amount you can deduct is:
 (a) 15% of the *taxable purpose proportion of the cost addition amount if the asset's *effective life is less than 25 years; or
 (b) 2.5% of the taxable purpose proportion of the cost addition amount if the asset's effective life is 25 years or more.

328‑195  Opening pool balance

 (1) For the first income year for which you are an *STS taxpayer, the opening pool balance of a pool is the sum of the *taxable purpose proportions of the *adjustable values of *depreciating assets allocated to the pool under subsection 328‑185(3).

 (2) For a later income year, the opening pool balance of a pool is that pool's *closing pool balance for the previous income year, reduced or increased by any adjustment required under section 328‑225 (about change in the business use of an asset).

Note: You continue to deduct amounts using your STS pools after you leave the STS: see section 328‑220.

 (3) However, if you stop being an *STS taxpayer and again become one for an income year, the opening pool balance of a pool includes the sum of the *taxable purpose proportions of the *adjustable values of *depreciating assets allocated to the pool under subsection 328‑185(3) for that year.

328‑200  Closing pool balance

  You work out the closing pool balance of a pool for an income year in this way:

      Method statement
           Step 1. Add to the *opening pool balance of the pool for the income year:

                (a) the sum of the *taxable purpose proportions of the *adjustable values of *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during the income year and that are allocated to that pool; and
                (b) the taxable purpose proportion of any cost addition amounts (see subsection 328‑190(3)) for the income year for assets allocated to the pool.

           Step 2. Subtract from the step 1 amount:

                (a) the *taxable purpose proportions of the *termination values of *depreciating assets allocated to the pool and for which a *balancing adjustment event occurred during the income year; and
                (b) your deduction under subsection 328‑190(1) for the pool for the income year; and
                (c) your deductions under subsection 328‑190(2) for *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during the income year and that are allocated to that pool; and
                (d) your deductions under subsection 328‑190(3) for the income year for cost addition amounts for assets allocated to the pool.

           Step 3. The result is the closing pool balance of the pool for the income year.

328‑205  Estimate of taxable use

 (1) You must,