Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_4:p3
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/9)
Character Range: 93242–95788

can only make this choice if you stop *holding the asset because:
 (a) the original asset is lost or destroyed; or
 (b) the original asset is compulsorily acquired by an *Australian government agency; or
 (c) you dispose of the original asset to an Australian government agency after a notice was served on you by or on behalf of the agency:
 (i) inviting you to negotiate with the agency with a view to the agency acquiring it by agreement; and
 (ii) informing you that, if the negotiations are unsuccessful, it will be compulsorily acquired by the agency.

 (3) You can only make this choice for a replacement asset if you incur the expenditure on the replacement asset, or you start to *hold it:
 (a) no earlier than one year, or within a further period the Commissioner allows, before the *balancing adjustment event occurred; and
 (b) no later than one year, or within a further period the Commissioner allows, after the end of the income year in which the balancing adjustment event occurred.

 (4) You can only make this choice for a replacement asset if:
 (a) at the end of the income year in which you incurred the expenditure on the asset, or you started to *hold it, you used it, or had it *installed ready for use, wholly for a *taxable purpose; and
 (b) you can deduct an amount for it.

 (5) The amount covered by the choice is applied in reduction of:
 (a) for the income year in which the replacement asset's *start time occurs—its *cost; or
 (b) for a later year—the sum of its *opening adjustable value for that year and any amount included in the second element of its cost for that year.

 (6) If you are making the choice for 2 or more replacement assets, you apportion the amount covered by the choice between those items in proportion to their *cost.

40‑370  Balancing adjustments where there has been use of different car expense methods

 (1) An amount is included in your assessable income or you can deduct an amount under this section instead of section 40‑285 if:
 (a) a *balancing adjustment event occurs for a *car you *held; and
 (b) you have deducted or can deduct an amount for the decline in value of the car for an income year under this Division; and
 (c) you chose:
 (i) the "cents per kilometre" method in Subdivision 28‑C; or
 (ii) the "12% of original value" method in Subdivision 28‑D;
  for deducting your car expenses for the car for one or more other income years.

Note 1: This means if you have only used the "log book" method or the "one‑third of actual expenses" method since you began using the