Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 3/3)
Character Range: 223152–224963

its cost. This Subdivision tells you how to work out its cost.

Table of sections

Operative provisions

42-65 How to work out your cost
42-70 Adjustment: acquiring a car at a discount
42-75 Adjustment: non-arm's length transactions
42-80 Adjustment: car depreciation limit
42-85 Adjustment: double deduction
42-90 Adjustment: previously depreciated plant limit

Operative provisions

42-65  How to work out your cost

      Method statement
           Step 1. Work out the cost of the *plant using the following table. If more than one row applies, use the cost under the last applicable row.
           Step 2. The table indicates provisions that may adjust the cost. Refer to them to see if an adjustment is necessary.
           Step 3. If more than one provision adjusts the cost, apply them in the order they appear in the table to:

                (a) the cost; or
                (b) the adjusted cost after applying the last applicable provision.

           Step 4. The result is your cost.

Example: An entity acquires a car in a non-arm's length transaction for $80,000. The market value of the car is $60,000. Assume the car depreciation limit for the year is $55,000.

 The provisional cost is $80,000 (item 1 of the table). The non-arm's length rule is applied next to reduce it to $60,000. Then the car depreciation limit applies to further reduce it. Your cost is $55,000.
Cost table
Item        For *plant ...                                                                                                                                                                                                 The cost is:                                                                                                                                                         May be adjusted by: