Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 4/4)
Character Range: 650812–652839

to the advantage of entities in working out the effective life of that kind of plant.

 (3) If a determination operates retrospectively, you can choose to work out under subsection 387‑175(3) the *effective life of a *horticultural plant to which the determination applies, even if you have previously chosen to work out the plant's effective life under subsection 387‑175(2).

 (4) You must make the choice by the day when you lodge your first *income tax return after the retrospective determination is made. (However, the Commissioner can allow you to make it later.) You cannot change the choice.

387‑180  Immediate write‑off for a horticultural plant with an effective life under 3 years

  If the *effective life of the *horticultural plant is under 3 years, you deduct the whole of the capital expenditure attributable to the establishment of the plant. The deduction is for the income year in which you first use the plant for *commercial horticulture (or hold it ready for that use).

For a list of some limits on deductions: see Note 1 to subsection 387‑165(4).

387‑185  Deduction for a horticultural plant with an effective life of 3 years or more

 (1) If the *effective life of the *horticultural plant is 3 years or more, your deduction for the income year is worked out using the formula:

where:

establishment expenditure is the amount of the capital expenditure that is attributable to the establishment of the *horticultural plant.

write‑off days in income year is the number of days in the income year on which you owned the *horticultural plant and either used it for *commercial horticulture or held it ready for that use.

write‑off rate is the rate shown in the table for the *horticultural plant, according to its *effective life:

Write‑off rate for horticultural plant
                                        For a *horticultural plant with an *effective life of:
Item                                                                                            The write‑off rate is: