Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 2/24)
Character Range: 1031201–1034020

a previous acquisition of the fencing asset.
Note: A depreciating asset and a repair of a capital nature or an alteration, addition or extension to that asset that is a fencing asset are not the same depreciating asset for the purposes of section 40‑50 and this Subdivision: see section 40‑53.
 (6) You cannot deduct an amount for any income year for capital expenditure on a *fencing asset to the extent that any entity has deducted or can deduct the amount under subsection 40‑630(1) (about landcare operations).
 (7) You cannot deduct an amount for any income year for capital expenditure on a *fencing asset if the fencing asset is (or is a repair, alteration, addition or extension to):
 (a) a stockyard or pen; or
 (b) a portable fence.

40‑560  Non‑arm's length transactions
  If you incurred capital expenditure under an *arrangement and:
 (a) there is at least one other party to the arrangement with whom you did not deal at *arm's length; and
 (b) apart from this section, the amount of the expenditure would be more than the *market value of what it was for;
the amount of expenditure you take into account under this Subdivision is that market value.

40‑565  Extra deduction for destruction of a horticultural plant
 (1) You can deduct the amount worked out under subsection (2) for a *horticultural plant for an income year if its *effective life is 3 years or more and it is destroyed during the income year while you own it and use it for *commercial horticulture.
 (2) Work out your deduction as follows:

      Method statement
           Step 1. Work out the total of the amounts you could have deducted under this Subdivision for the *horticultural plant for the period:
                  (a) starting when the plant could first be used for *commercial horticulture; and
                  (b) ending when it was destroyed;
            assuming that, during that period, you satisfied a condition in section 40‑525 for the plant and used it for commercial horticulture.
           Step 2. Subtract from the capital expenditure that is attributable to the establishment of the *horticultural plant:
                  (a) the result from step 1; and
                  (b) any amount you received (under an insurance policy or otherwise) for the destruction.
            The remaining amount (if any) is your deduction under subsection (1).
 (3) This deduction is in addition to any deduction for the income year under section 40‑545.

40‑570  How this Subdivision applies to partners and partnerships
 (1) This section applies to allocate expenditure to you for the purposes of this Subdivision if you were a partner in a partnership when it incurred capital expenditure during an income year.
 (2) For the purposes of this Subdivision, you are taken to have incurred during that income year:
 (a) the