Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:4_1:p4
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 4/6)
Character Range: 27481–30388

interest of the joining entity in that asset is treated as a retained cost base asset for the purpose of working out the tax cost setting amounts for the joining entity's partnership cost setting interests in the partnership.

Partnership cost setting interest takes character of partnership asset—excluded assets

 (3) If:
 (a) tax cost setting amounts were to be worked out for the assets of the partnership under Division 705; and
 (b) in working out those amounts, the underlying partnership asset mentioned in subsection (2) would be an excluded asset for the purposes of section 705‑35;
then subsection (2) operates so that the *tax cost setting amounts for those *partnership cost setting interests are worked out as if any partnership cost setting interest that relates to the underlying partnership asset were an excluded asset for the purposes of section 705‑35.

Special character of partnership cost setting interest in partnership asset that is trading stock or depreciating asset

 (4) Despite subsection (2), if an asset of the partnership is *trading stock or a *depreciating asset, work out the *tax cost setting amounts for those *partnership cost setting interests as if:
 (a) a partnership cost setting interest relating to that asset were a *retained cost base asset; and
 (b) the tax cost setting amount for that partnership cost setting interest were equal to its *terminating value (worked out in accordance with section 713‑215).

Reduction in allocable cost amount for over‑depreciated partnership assets

 (5) If one or more assets of the partnership are *over‑depreciated at the joining time, reduce the group's allocable cost amount for the joining entity in accordance with section 713‑230.

Partnership liabilities—working out allocable cost amount

 (6) If:
 (a) according to *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, a thing (the partnership liability) is a liability of the partnership at the joining time that can or must be recognised in the partnership's statement of financial position; and
 (b) for that reason, the partnership liability is not an accounting liability of the joining entity at the joining time for the purposes of section 705‑70;
then sections 705‑70, 705‑75 and 705‑80 operate as if the partnership liability were an accounting liability of the joining entity at the joining time, to the extent of the joining entity's individual share of the partnership liability.

Partnership deductions—working out allocable cost amount

 (7) Section 705‑115 operates as if:
 (a) a deduction to which the partnership is entitled (the partnership deduction) were a deduction to which the joining entity was entitled, to the extent of the joining entity's individual share of the partnership deduction; and
 (b) the deduction to which the joining entity was entitled were of the same kind as