Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 14/34)
Character Range: 5111199–5113783

adjustment events under paragraph (a) of step 2 if roll‑over relief under section 40‑340 is chosen: see sections 328‑243 and 328‑245.

328‑205  Estimate of taxable use
 (1) You must, for the first income year for which you are, or last were, a *small business entity, make a reasonable estimate for that year of the proportion you will use, or have *installed ready for use, each *depreciating asset that you *held just before, and at the start of, that year for a *taxable purpose if:
 (a) the asset has not previously been allocated to your *general small business pool; and
 (b) you have started to use it, or have it installed ready for use, for a taxable purpose; and
 (c) you have chosen to calculate your deductions for it under this Subdivision.
Note 1: That proportion will be 100% for an asset that you expect to use, or have installed ready for use, solely for a taxable purpose.
Note 2: Your estimate will be zero for an income year if another provision of this Act denies a deduction for that year: see section 328‑230.
Note 3: This subsection does not apply to a transferee for certain assets if roll‑over relief under section 40‑340 is chosen: see sections 328‑243 and 328‑257.
 (2) You must also make this estimate for each *depreciating asset that you *hold and start to use, or have *installed ready for use, for a *taxable purpose during an income year for which you are a *small business entity and you choose to use this Subdivision. You must make the estimate for the income year in which you start to use it, or have it installed ready for use, for such a purpose.
 (3) The taxable purpose proportion of a *depreciating asset's *adjustable value, or of an amount included in the second element of its *cost, is that part of that amount that represents:
 (a) the proportion you estimated under subsection (1) or (2); or
 (b) if you have had to make an adjustment under section 328‑225 for the asset—the proportion most recently applicable to the asset under that section.
Note: An amount included in the second element of the cost of a depreciating asset is referred to in this Division as a cost addition amount: see subsection 328‑190(3).
 (4) The taxable purpose proportion of a *depreciating asset's *termination value is that part of that amount that represents:
 (a) if you have not had to make an adjustment under section 328‑225 for the asset—the proportion you estimated under subsection (1) or (2); or
 (b) if you have had to make at least one such adjustment—the average of:
 (i) the proportion you estimated under subsection (1) or (2); and
 (ii) the