Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 8/13)
Character Range: 1002127–1004681

than one year, or within a further period the Commissioner allows, before the *balancing adjustment event occurred; and
 (b) no later than one year, or within a further period the Commissioner allows, after the end of the income year in which the balancing adjustment event occurred.
 (4) You can only make this choice for a replacement asset if:
 (a) at the end of the income year in which you incurred the expenditure on the asset, or you started to *hold it, you used it, or had it *installed ready for use, wholly for a *taxable purpose; and
 (b) you can deduct an amount for it.
 (5) For the purposes of applying this Act to the replacement asset:
 (a) its *cost is reduced by the amount covered by the choice for the income year in which the asset's *start time occurs; and
 (b) if the income year is later than the one in which the asset's *start time occurs—the sum of its *opening adjustable value for that later year and any amount included in the second element of the asset's cost for that later year is reduced by the amount covered by the choice.
 (6) If you are making the choice for 2 or more replacement assets, you apportion the amount covered by the choice between those items in proportion to their *cost.

40‑370  Balancing adjustments where there has been use of different car expense methods
 (1) An amount is included in your assessable income or you can deduct an amount under this section instead of section 40‑285 if:
 (a) a *balancing adjustment event occurs for a *car you *held; and
 (b) you have deducted or can deduct an amount for the decline in value of the car for an income year under this Division; and
 (c) you chose the "cents per kilometre" method in Subdivision 28‑C for deducting your car expenses for the car for one or more other income years.
Note 1: This means if you have only used the "log book" method since you began using the car, you calculate the assessable amount or deductible amount under section 40‑285.
Note 2: Also, if you have only used the "cents per kilometre" method since you began using the car, no amount is assessable or deductible under this section or section 40‑285.
 (2) Work out the amount you include in your assessable income or the amount you can deduct in this way:

      Method statement
           Step 1. Subtract the *car's *adjustable value just before the *balancing adjustment event occurred from the car's *termination value.
           Step 2. Reduce the step 1 amount by the part of the *car's decline in value that is attributable to your using the car, or having it