Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p18
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 18/24)
Character Range: 455755–458468

extending to land;
      if you have an interest in the land and the land is used for a primary production business.

Table of sections

Deductions

387‑405 Deduction for expenditure on a telephone line

Limits on deductions

387‑410 Expenditure that you cannot deduct
387‑415 Relationship with other deductions

Partnerships

387‑420 How this Subdivision applies to partners and partnerships

Deductions

387‑405  Deduction for expenditure on a telephone line

 (1) You can deduct an amount under subsection (2) for your capital expenditure on a telephone line on or extending to land if, when you incurred the expenditure:
 (a) a *primary production business was carried on on the land; and
 (b) you had an interest in the land or you were a share-farmer carrying on a *primary production business on the land.

Note: Special rules apply to partners and partnerships. See section 387‑420.

 (2) You can deduct 10% of the expenditure:
 (a) for the income year in which you incurred the expenditure; and
 (b) for each of the next 9 income years.

Note: Various provisions may reduce the amount you can deduct or stop you deducting. For example, see:
  *    Division 26 of this Act (limiting deductions generally);
  *    sections 387‑410 of this Act (specifying expenditure you cannot deduct under this Subdivision);
  *    Division 245 of Schedule 2C to the Income Tax Assessment Act 1936 (which may affect your entitlement to a deduction if your debts are forgiven).

Limits on deductions

387‑410  Expenditure that you cannot deduct

 (1) Despite section 387‑405, you cannot deduct an amount under this Subdivision for any income year for your capital expenditure on a part of a telephone line if:
 (a) any entity has deducted, or can deduct, an amount for any income year for the cost of that part under a provision of this Act (except this Subdivision); or
 (b) the cost of that part has been, or must be, taken into account in working out:
 (i) the amount of any entity's deduction (including a deduction for depreciation) for any income year under a provision of this Act (except this Subdivision); or
 (ii) the net income, or partnership loss, of a partnership under section 90 of the Income Tax Assessment Act 1936.

Note: The fact that you have deducted, or can deduct, an amount under section 70 of the Income Tax Assessment Act 1936 for your expenditure on part of a telephone line does not prevent you from deducting an amount under this Subdivision for your expenditure on that part of a telephone line. See section 387‑410 of the Income Tax (Transitional Provisions) Act 1997.

 (2) However, you can deduct an amount under this Subdivision for your expenditure on a part of a telephone line