Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_4:p2
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 2/9)
Character Range: 90788–93478

event for the transferor.

 (2) The transferee can deduct the decline in value of the *depreciating asset using the same method and *effective life (or *remaining effective life if that method is the *prime cost method) that the transferor was using.

40‑350  Additional consequences

 (1) For the purposes of Division 45:
 (a) if the transferor, or a partnership of which the transferor was a member, leased the *depreciating asset to another entity for most of the time that the transferor or partnership *held the asset, the transferee is taken also to have done so; and
 (b) if the transferor, or a partnership of which the transferor was a member, leased the asset to another entity for a period on or after 22 February 1999, the transferee is taken also to have done so; and
 (c) if the main *business of the transferor, or a partnership of which the transferor was a member, was to lease assets, the main business of the transferee is taken also to have been to lease assets.

 (2) However, subsection (1) does not apply to roll‑over relief under subsection 40‑340(3) if the sum of the amounts specified in paragraph 45‑5(1)(e) or 45‑10(1)(f), or subsection 45‑5(4) or 45‑10(4), is at least equal to the market value of the *plant or interest concerned.

40‑360  Notice to allow transferee to work out how this Division applies

 (1) This section applies if there is roll‑over relief because of subsection 40‑340(1).

 (2) The transferor must give the transferee a notice containing enough information about the transferor's *holding of the property for the transferee to work out how this Division applies to the transferee's holding of the *depreciating asset.

 (3) The transferor must give the notice within 6 months after the end of the transferee's income year in which the *balancing adjustment event occurred, or within a longer period allowed by the Commissioner.

 (4) The transferee must keep the notice until the end of 5 years after the earlier of these events:
 (a) the transferee disposes of the property;
 (b) the property is lost or destroyed.

Penalty: 30 penalty units.

40‑365  Involuntary disposals

 (1) You may exclude some or all of an amount that has been included in your assessable income for a *depreciating asset (the original asset) as a result of a *balancing adjustment event to the extent that you choose to treat it as an amount to be applied under subsection (5) for one or more replacement assets.

 (2) You can only make this choice if you stop *holding the asset because:
 (a) the original asset is lost or destroyed; or
 (b) the original asset is compulsorily acquired by an *Australian government agency; or
 (c) you dispose of the original