Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/9)
Character Range: 967959–970654

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 1: 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).
Note 2: To the extent any amount that is included in the R&D partnership's assessable income under section 40‑285 relates to R&D activities, a partner may have an additional amount included in the partner's assessable income (see section 355‑449).
Note 3: To the extent any amount that the R&D partnership is entitled to as a deduction under section 40‑285 relates to R&D activities, a partner may have an additional amount the partner can deduct (see section 355‑468).

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.

40‑295  Meaning of balancing adjustment event
 (1) A balancing adjustment event occurs for a *depreciating asset if:
 (a) you stop *holding the asset; or
 (b) you stop using it, or having it *installed ready for use, for any purpose and you expect never to use it, or have it installed ready for use, again; or
 (c) you have not used it and:
 (i) if you have had it installed ready for use—you stop having it so installed; and
 (ii) you decide never to use it.
Note: A balancing adjustment event occurs under paragraph 40‑295(1)(a) when you start holding a depreciating asset as trading stock.
 (1A) A balancing adjustment event occurs for a *depreciating asset you *hold that is a *mining, quarrying or prospecting right, or *mining, quarrying or prospecting information, if:
 (a) the only reason that subsection 40‑80(1) does not apply to the right or information is that the right or information does not meet the requirements of paragraph 40‑80(1)(d) or (e); and
 (b) you have neither budgeted nor planned for further expenditure that:
 (i) will relate to the tenement to which the right or information relates; and
 (ii) will exceed the minimum expenditure required to maintain the tenement; and
 (c) you choose to apply this subsection to the right or information.
 (1B) A balancing adjustment event occurs for a *depreciating asset you *hold that is a