Document ID: chunk:federal_register_of_legislation:C2014C00703:clause:3_24:p2
Version: federal_register_of_legislation:C2014C00703
Segment Type: clause
Provision Reference: sch 3 cl 24 (pt 2/3)
Character Range: 149947–152624

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 your assessable income—so much of the section 40‑285 amount as does not exceed the total decline in value.
total decline in value means the *cost of the asset less its *adjustable value.

40‑293  Adjustments—partnership assets used for both general tax purposes and R&D activities
 (1) This section applies to an *R&D partnership if:
 (a) a *balancing adjustment event happens in an income year (the event year) for a *depreciating asset *held by the R&D partnership and for which:
 (i) the R&D partnership can deduct, for an income year, an amount under section 40‑25, as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936; or
 (ii) the R&D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and
 (b) one or more partners of the R&D partnership are entitled under section 355‑100 to *tax offsets for one or more income years for deductions (the R&D deductions) under section 355‑520 for the asset.
Note: This section applies in a modified way if the partners have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40‑293 of the Income Tax (Transitional Provisions) Act 1997).

Section 40‑290 to be applied as if use for conducting R&D activities were use for a taxable purpose
 (2) In applying section 40‑290 (including references in that section to the reduction of deductions under section 40‑25) in relation to the asset, assume that using the asset for a *taxable purpose includes using it for the purpose of conducting the *R&D activities to which the R&D 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 (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 (after applying subsection (2) of this section) for the event year;
is increased by 1/3 of 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.
total decline in value means the *cost of the asset less its *adjustable value.