Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_4:p4
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 4/5)
Character Range: 287942–290486

eligible for allocation to a pool?

  You can only allocate *plant to a *pool for an income year if:
 (a) you can deduct an amount for depreciation of it for that year; and
 (b) the *diminishing value rate for the plant matches the pool percentage; and
 (c) during the period you were its owner or *quasi-owner before that year, you used it, or had it *installed ready for use, wholly for the *purpose of producing assessable income; and
 (d) you were its owner or *quasi-owner immediately after the beginning of that year; and
 (e) it has not been allocated to another *pool for that year.

42-370  Removal of plant from a pool

 (1) *Plant is removed from a *pool if you choose to remove it and you record the removal and the date of removal in writing.

Note: You may re-allocate the plant to a pool under section 42-360.

 (2) *Plant is automatically removed from a *pool if:
 (a) you cease to use it, or to have it *installed ready for use, wholly for the *purpose of producing assessable income and the cessation was not caused by a *balancing adjustment event; or
 (b) the *diminishing value rate for the plant no longer matches the pool percentage; or
 (c) a balancing adjustment event occurs for the plant and Common rule 1 applies to that event.

Note: Property removed from a pool because of paragraph (b) can be allocated to another pool under section 42-360.

 (3) If *plant is removed from a *pool:
 (a) it is taken not to have been in the pool for the income year in which it is removed; and
 (b) you are taken to have deducted amounts for depreciation of it for the period it was in the pool as if you had used the pool percentage as your rate and the *diminishing value method; and
 (c) you must use the diminishing value method in calculating future depreciation deductions for it.

42-375  Calculating depreciation deductions for pooled plant

  Calculate your deduction for a *pool using the formula:

42-380  Meaning of opening balance

  The opening balance of a *pool for an income year is worked out using the formula:

where:

closing balance for last year means the *closing balance for the *pool for the preceding income year worked out under section 42‑385.

undeducted cost of new plant means the sum of the *undeducted costs, as at the beginning of the income year, of *plant allocated to the *pool for that year that was not in the pool for the preceding year.

reduction for removed plant means the sum of the *undeducted costs, as at the beginning of the income year, of any *plant removed for that year that