Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 2/4)
Character Range: 645526–648374

incurred the expenditure.)

Note: Section 387‑195 prevents you deducting:

                  * expenditure on draining swamps or low‑lying land; and

                  * expenditure for which you can get a deduction under other provisions.

First entity to use the plant for commercial horticulture

 (2) To get the deduction:

 (a) you must be the first entity to use the *horticultural plant (or hold it ready for use) for *commercial horticulture; and

 (b) you must own the plant when it is first used (or held ready for use) for commercial horticulture.

(This allows you to choose how the plant's *effective life is fixed.)

Note: You may be treated as owning a horticultural plant if it is on land you hold under a lease, quasi‑ownership right or licence: see section 387‑210.

Later owner

 (3) If the *horticultural plant's *effective life is 3 years or more, you can deduct under this section even if you do not satisfy subsection (2). You can deduct what you could have deducted under this section if you had owned and used the plant for *commercial horticulture when it was first used (or held ready for use) for commercial horticulture.

  (However, the other requirements for deductions under this section must still be satisfied, and the plant's effective life is not affected.)

Note: You can get from the last owner of the plant information relevant to working out your deduction for the plant: see section 387‑205.

Ownership during current year

 (4) If the *horticultural plant's *effective life is 3 years or more, you must also own and use the plant during the *current year as described in subsection 387‑185(1).

Amount and timing of deduction

 (5) You work out the amount and timing of your deduction:

 (a) under section 387‑180 if the *effective life of the *horticultural plant is under 3 years; or

 (b) under section 387‑185 if the *effective life of the *horticultural plant is 3 years or more.

Note 1: Various provisions may prevent or reduce your deduction. For example, see:

                  * Division 26 of this Act (limiting deductions generally);

                  * Division 245 of Schedule 2C to the Income Tax Assessment Act 1936 (which may affect your entitlement to a deduction for a horticultural plant with an effective life of 3 years or more if your debts are forgiven).

Note 2: If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20‑A.

387‑170  Meaning of horticultural plant, horticulture business, horticulture and commercial horticulture

 (1) A horticultural plant is a live member of the plant kingdom or fungus kingdom that is cultivated or propagated for any of its products or parts (including foliage, flowers, fruit, fruiting bodies, seeds, bulbs and spores).

 (2) A horticulture business