Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_8:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 3/4)
Character Range: 251906–254806

was first allowable to you for the car; and
 (iii) no provision of this Act denied a depreciation deduction for it; and
 (iv) Division 28 (Car expenses) did not apply; and
 (d) if Common rule 1 applied to your acquisition of the plant—the sum of the amounts that would apply under paragraphs (a), (b) and (c) to the transferor and earlier successive transferors.

Subdivision 42-F—Calculation of balancing adjustments

Guide to Subdivision 42-F

42-180  What this Subdivision is about

      This Subdivision explains how to calculate your balancing adjustment when a balancing adjustment event occurs.
      The calculation may result in:
           an amount being included in your assessable income; or
           you being able to deduct an amount; or
           no further action being required.

Table of sections

42-182 Diagram showing the application of this Subdivision

Operative provisions

42-185 When do you make a balancing adjustment calculation?
42-190 Including an amount in assessable income
42-195 Deducting an amount
42-200 Meaning of written down value
42-205 Meaning of termination value
42-210 Adjustment: non-arm's length transactions
42-215 Adjustment: car depreciation limit
42-220 Plant used for research and development

42-182  Diagram showing the application of this Subdivision

Operative provisions

42-185  When do you make a balancing adjustment calculation?

  You must make a balancing adjustment calculation for the income year in which a *balancing adjustment event occurs.

42-190  Including an amount in assessable income

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

 (2) You include the lesser of:
 (a) the amounts you have deducted or can deduct for depreciation of the *plant; and
 (b) the excess referred to in subsection (1).

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

For plant used for research and development, see section 42-220.

 (3) If Common rule 1 applied to your acquisition of the *plant, 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.

42-195  Deducting an amount

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

 (2) The amount you deduct is the difference between those amounts.

 (3) However, you reduce that difference to reasonably reflect the extent (if any) to which you used the *plant, or had it *installed ready for use, other than for the *purpose of producing assessable income when you were its owner or *quasi-owner.

42-200  Meaning of written down value

  The written down value of *plant is its *cost less the sum of:
 (a) the amounts you have deducted or can deduct for depreciation of it; and
 (b) if Common rule 1 applied to