Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p9
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 9/11)
Character Range: 33392–37008

of the outstanding deductions is included in assessable income, ie $5,000.

20-50  If the expense is only partially deductible

 (1) This section extends the operation of section 20-35 or 20-40 (as appropriate) to a case where the total of what you can deduct under a provision (the deduction provision) for a loss or outgoing is limited to a proportion of the loss or outgoing.

 (2) If you receive an *assessable recoupment of the loss or outgoing, section 20-35 or 20-40 applies as if:
 (a) you had incurred only that proportion of the loss or outgoing, but could deduct the whole of that proportion under the deduction provision; and
 (b) you had received only that proportion of the recoupment.

Example: You incur expenditure of $500. A provision listed in section 20-30 entitles you to deduct 10% of the expenditure ($50) over 5 years. This means you can deduct $10 in each of the 5 years.

 You recoup $300 of the expenditure. This section treats you as receiving only 10% of the recoupment. Therefore, $30 is dealt with by section 20-40.

20-55  Meaning of previous recoupment law

Previous recoupment law means a provision of the Income Tax Assessment Act 1936 listed in this table.

Previous recoupment law
                                                                                                                                                    What kind of expense the provision relates to:
Item                     Provision
  1                      26(j) (so far as it relates to an amount received for or in respect of a loss or outgoing that is an allowable deduction)  a loss or outgoing that is an allowable deduction
  2                      26(k)                                                                                                                      embezzlement or larceny by an employee
  3                      63(3)                                                                                                                      bad debts
  4                      69(8)                                                                                                                      tax-related expenses
  5                      70A(5)                                                                                                                     mains electricity connection expenditure
  6                      72(2) (so far as it relates to a refund of an amount allowed or allowable as a deduction)                                  rates or taxes
  7                      74(2)                                                                                                                      election expenses, Commonwealth and State elections

Subdivision 20-B—Disposal of a car for which lease payments have been deducted

Guide to Subdivision 20-B

20-100  What this Subdivision is about

      This Subdivision reverses the effect of deductions for lease payments for a car leased to you (or to your associate), but only if you make a profit by disposing of the car after acquiring it from the lessor. The smallest of these amounts is included in your assessable income:
           your profit on the disposal;
           the total deductible lease payments for the period of the lease;
           the total amounts you could have deducted for depreciation of the car if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income.

Table of sections

20-105 Map of this Subdivision

The usual case

20-110 Disposal of a leased car for profit
20-115 Working out the profit on the disposal