Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p10
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 10/11)
Character Range: 36775–39323

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
20-120 Meaning of notional depreciation

The associate case

20-125 Disposal of a leased car for profit

Successive leases

20-130 Successive leases

Previous disposals of the car

20-135 No amount included if earlier disposal for market value
20-140 Reducing the amount to be included if there has been an earlier disposal

Miscellaneous rules

20-145 No amount included if you inherited the car
20-150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20-155 Exception for particular cars taken on hire

Disposals of interests in a car: special rules apply

20-160 Disposal of an interest in a car

20-105  Map of this Subdivision

The usual case

20-110  Disposal of a leased car for profit

 (1) Your assessable income includes the *profit you make on disposing of a *car if:
 (a) the car was designed mainly for carrying passengers; and
 (b) the car was leased to you and has been leased to no-one else; and
 (c) you or another entity can deduct for the income year any of the lease payments paid or payable by you, or have deducted or can deduct any of them for an earlier income year, under this Act; and
 (d) you acquired the car from the lessor.

Note 1: Even if subsection (1) does not apply, an amount may still be included in your assessable income:
  *    under section 20-125 (which deals with more complicated cases that may involve your associate); or
  *    if you disposed of an interest in a car (rather than the car itself): see section 20-160.

Note 2: In some cases you do not include an amount in your assessable income:
  *    if there has been an earlier disposal of the car for market value: see section 20-135; or
  *    if you inherited the car: see section 20-145; or
  *    if the car was let on hire in the circumstances set out in section 20‑155.

 (2) However, the amount included cannot exceed the smaller of these limits:
 (a) the total lease payments for the lease that you or another entity have deducted or can deduct under this Act for an income year;
 (b) the amount of *notional depreciation for the lease period.

Note 1: If, because of more than one lease of the car, there is more than one way to work out the amount to be included, you only include the largest amount: see section 20-130.

Note 2: In