Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_12:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 3/7)
Character Range: 267585–270243

expenses for the car for one or more other income years.

 (2) You must make that calculation for the income year in which a *balancing adjustment event occurs for the *car.

42-240  Including an amount in assessable income

 (1) You include an amount in your assessable income if the *termination value of the *car exceeds its *notional written down value.

 (2) First, work out the lesser of:
 (a) the sum of the *notional depreciation amount and the amounts you have deducted or can deduct for depreciation of the *car; and
 (b) the excess referred to in subsection (1).

 (3) Then apply the reduction rule in section 42-250 and include the result in your assessable income.

For balancing adjustment relief, see sections 42-285, 42-290 and 42-295.

 (4) If Common rule 1 applied to your acquisition of the *car, the amounts you have deducted or can deduct are taken to include amounts the transferor, and earlier successive transferors, deducted or can deduct for depreciation of it.

42-245  Deducting an amount

 (1) You deduct an amount if the *termination value of the *car is less than its *undeducted cost.

 (2) Work out the difference between those amounts.

 (3) Reduce that difference to reasonably reflect the extent (if any) to which you used the *car, or had it *installed ready for use, other than for the *purpose of producing assessable income when you were its owner. In working out the reduction for the income years for which you chose the "cents per kilometre" method or the "12% of original value" method for the car, you apply the assumptions in section 42-255.

 (4) Then apply the reduction rule in section 42-250 and deduct the result.

42-250  Reduction to take account of days when depreciation not claimed

  Multiply the amount from subsection 42-240(2) or 42-245(3) by the fraction calculated using the formula:

where:

depreciation days is the total number of days you were the owner of the *car in each income year for which you have deducted or can deduct an amount for depreciation of it.

non-depreciation days is the total number of days you were the owner of the *car in each income year for which you chose the "cents per kilometre" method or the "12% of original value" method for deducting your *car expenses.

42-255  Meaning of notional depreciation amount

  The notional depreciation amount for a *car is the sum of the amounts you could have deducted for depreciation of the car for the income years for which you chose the "cents per kilometre" method or the "12% of original value" method for the car assuming that:
 (a) you had not chosen either of those methods for the car; and
 (b) Division 28 (car