Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p47
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 47/50)
Character Range: 192444–195024

can deduct (the old law deductions) under former section 73BA or 73BH of the old Act amounts for one or more income years for the asset;
 (ii) one or more partners of the R&D partnership choose tax offsets under former section 73I of the old Act instead of deductions (also the old law deductions) under those former sections for one or more income years for the asset.
Note: This section applies even if the partners are entitled under section 355‑100 of the new Act to tax offsets for one or more income years for deductions under section 355‑520 of that Act for the asset.

Section 40‑290 to be applied as if use for carrying on R&D activities were use for a taxable purpose
 (2) In applying section 40‑290 of the new Act (including references in that section to the reduction of deductions under section 40‑25 of that Act) in relation to the asset, assume that using the asset for a taxable purpose includes using it for:
 (a) the purpose of the carrying on, by or on behalf of the R&D partnership, of the research and development activities (within the meaning of former section 73B of the old Act) to which the old law deductions relate; or
 (b) if one or more partners of the R&D partnership are entitled under section 355‑100 of the new Act to tax offsets for one or more income years for deductions (the new law deductions) under section 355‑520 of that Act for the asset—the purpose of conducting the R&D activities to which the new law deductions relate.

Increase in amounts deductible or assessable under section 40‑285
 (3) Any amount (the section 40‑285 amount):
 (a) that the R&D partnership can deduct for the asset under section 40‑285 of the new Act (after applying subsection (2) of this section) for the event year; or
 (b) that is included in the R&D partnership's assessable income for the asset under section 40‑285 of the new Act (after applying subsection (2) of this section) for the event year;
is taken to be increased under section 40‑293 of the new Act by the following amount:

where:
adjusted section 40‑285 amount means:
 (a) if the section 40‑285 amount is a deduction—the amount of the deduction; or
 (b) if the section 40‑285 amount is an amount included in the R&D partnership's assessable income—so much of the section 40‑285 amount as does not exceed the total decline in value.
old law 1.25 rate deductions means the sum of the partners' notional Division 40 deductions, and notional Division 42 deductions, (if any) for the asset that were multiplied by 1.25 in working out the old law deductions.
total decline in value means the cost of