Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p24
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 24/24)
Character Range: 470672–472748

(b) one or more of the following events happens during the current year:
 (i) you dispose of the road or building in circumstances in which Subdivision 41-A (which sets out Common
rule 1 dealing with roll-over relief for related entities) does not apply;
 (ii) the road or building is destroyed;
 (iii) for some other reason, you stop using it for the purpose for which it was primarily and principally constructed or acquired.

Note: Take account of amounts deducted or deductible under section 124F or 124JA of the Income Tax Assessment Act 1936 for the road or building. See section 387‑472 of the Income Tax (Transitional Provisions) Act 1997.

 (2) You make the balancing adjustment by comparing the *termination value of the road or building with its *written down value.

Note: If there has been an earlier disposal of the road or building covered by Subdivision 41-A (which sets out Common rule 1 dealing with
roll-over relief for related entities), the balancing adjustment is modified as described in section 41-20.

 (3) If the *termination value exceeds the *written down value, the excess is included in your assessable income for the *current year. However, if the excess is more than the total of the amounts you deducted or can deduct under this Subdivision for earlier income years for your capital expenditure relating to the road or building, that total is included in your assessable income instead.

 (4) If the *termination value is less than the *written down value, you can deduct the amount of the difference.

387‑490  Meaning of termination value

 (1) The termination value of a *forestry road or *timber mill building is the value shown in the following table, depending on the circumstances that require you to make a balancing adjustment.
Termination value of a forestry road or timber mill building
Item                                                          For a road or building that ...                                                                                                                           the termination value is ...