Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 3/11)
Character Range: 695192–698140

expenditure for acquiring land; or

 (b) expenditure to the extent to which it is taken into account in calculating an amount of depreciation that is deductible under Division 42; or

 (c) capital expenditure for constructing a building, structure or structural improvement; or

 (d) capital expenditure for constructing an extension, alteration or improvement to a building, structure or structural improvement; or

 (e) a bond or security (however described) for performing *environmental protection activities; or

 (f) expenditure to the extent that you can deduct an amount for it under a provision of this Act outside this Subdivision.

Note: You may be able to deduct expenditure described in paragraph (1)(c) or (d) under Division 43 (which deals with capital works).

 (2) In particular, you cannot deduct under this Subdivision expenditure to the extent that you incur it on carrying out an activity as mentioned in subsection 400‑15(1) (about deductions for environmental impact assessment of your project).

Common rule 2 applies

 (3) Subdivision 41‑B (which sets out Common rule 2 dealing with non‑arm's length transactions) applies to expenditure for which you can deduct amounts under this Subdivision, but with the modification in subsection (4) of this section.

 (4) If subsection 41‑65(1) applies, it has a wider operation in 2 ways.

  First, it also operates if the amount of the expenditure is less than the market value of what the expenditure is for.

  Second, if the amount of the expenditure is greater than or less than that market value, the amount of the expenditure is taken, for the purposes of applying this Act to both parties, to be that market value.

No deduction for expenditure excluded from general deductions

 (5) You cannot deduct expenditure under section 400‑55 to the extent that a provision of this Act (except section 8‑1 itself) expressly prevents or limits your deducting it under section 8‑1 (about general deductions). It does not matter whether the provision specifically refers to section 8‑1.

Subdivision 400‑C—Property taken to be used for producing assessable income

Table of sections

400‑100 Use for environmental impact assessment or environmental protection activities taken to be use for purpose of producing assessable income

400‑100  Use for environmental impact assessment or environmental protection activities taken to be use for purpose of producing assessable income

 (1) For the purposes of this Act, you are taken to use property for the *purpose of producing assessable income if you use it for:

 (a) carrying out an activity as mentioned in subsection 400‑15(1) (about environmental impact assessment of your project); or

 (b) *environmental protection activities.

Note: This may let you get a deduction relating to the property under a provision of this Act outside this Division (such as Division 42, which allows deductions for depreciation