Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_2:p2
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/5)
Character Range: 68315–70925

original asset or assets.

40‑215  Adjustment: double deduction

 (1) Each element of the *cost of a *depreciating asset is reduced by any portion of that element of cost that you have deducted or can deduct, or that has been or will be taken into account in working out an amount you can deduct, other than under this Division.

 (2) Subsection (1) does not apply to deductions for:
 (a) research and development plant expenditure (section 73B of the Income Tax Assessment Act 1936); or
 (b) development and investment allowances (Subdivisions B and BA of Division 3 of Part III of that Act); or
 (c) drought investment allowance (Part XII of that Act).

40‑220  Cost reduced by amounts not of a capital nature

  The *cost of a *depreciating asset is reduced by any portion of it that consists of an amount that is not of a capital nature.

40‑225  Adjustment: acquiring a car at a discount

 (1) You must increase the first element of the cost of a *car designed mainly for carrying passengers you acquire at a discount if:
 (a) it is reasonable to conclude that any portion (the discount portion) of the discount is referable to you or another entity selling another asset for less than its *market value; and
 (b) you, or another entity, has deducted or can deduct an amount for the other asset for any income year; and
 (c) the sum of the cost of the car and the discount portion exceeds the *car limit for the *financial year in which you first use the car for any purpose.

 (2) The first element of the cost of the *car is increased by the discount portion.

 (3) This section does not apply to a *car that is excluded from the *car limit by subsection 40‑230(2).

40‑230  Adjustment: car limit

 (1) The first element of the cost of a *car designed mainly for carrying passengers (after applying section 40‑225) is reduced to the *car limit for the *financial year in which you started to *hold it if its cost exceeds that limit.

 (2) However, the *car limit does not apply to a *car:
 (a) fitted out for transporting disabled people in wheelchairs for profit; or
 (b) whose first element of *cost exceeds that limit only because of modifications made to enable an individual with a disability to use it for a *taxable purpose.

 (3) The car limit for the 2000‑01 *financial year is $55,134. The limit is indexed annually.

Note: Subdivision 960‑M shows you how to index amounts.

Subdivision 40‑D—Balancing adjustments

Guide to Subdivision 40‑D

40‑280  What this Subdivision is about

      You may have to make an adjustment to your taxable income if you stop holding a depreciating asset.