Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:4_1:p5
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 5/6)
Character Range: 30156–32987

were a deduction to which the joining entity was entitled, to the extent of the joining entity's individual share of the partnership deduction; and
 (b) the deduction to which the joining entity was entitled were of the same kind as the partnership deduction.

Note: These kinds of deductions include acquired deductions and owned deductions (within the meaning of section 705‑115).

713‑230  Reduction in allocable cost amount if partnership asset is over‑depreciated

 (1) The object of this section is to reduce the group's allocable cost amount for the joining entity, if one or more assets of the partnership are *over‑depreciated at the joining time. The amount of the reduction is calculated under section 705‑50 in relation to the joining entity's *partnership cost setting interests (the reduction interests) relating to those assets.

 (2) Reduce the allocable cost amount mentioned in subsection 713‑225(5) by the reduction amount worked out under subsection (3).

 (3) The reduction amount is the total of the amounts that would be reduced under section 705‑50 for all the reduction interests if:
 (a) this Subdivision did not include subsection 713‑225(5) or this section; and
 (b) subsection 713‑225(4) did not apply to any of the reduction interests; and

Note: This means that the reduction interests would be treated as over‑depreciated assets, in accordance with subsection 713‑225(2).
 (c) the *adjustable value of a particular reduction interest were equal to its individual share of the adjustable value of the asset of the partnership to which it relates; and
 (d) the *cost of the interest were equal to its individual share of the cost of the asset of the partnership to which it relates; and
 (e) section 705‑50 did not include subsection 705‑50(4).

Special rules where partnership joins consolidated group

713‑235  Partnership joins group—set tax cost of partnership assets

 (1) This section applies if a partnership becomes a *subsidiary member of a *consolidated group at a time (the joining time).

 (2) In applying the provisions mentioned in subsection 713‑205(3) in relation to the partnership:
 (a) do not work out an allocable cost amount for the partnership; and
 (b) work out the *tax cost setting amount for each asset of the partnership covered by subsection (3), in accordance with section 713‑240.

Note: If a partner in the partnership becomes a subsidiary member of the group at the joining time, tax cost setting amounts are worked out for the assets of the partner (including partnership cost setting interests) before tax cost setting amounts are worked out for the assets of the partnership.

 (3) An asset of the partnership at the joining time is covered by this subsection, unless it would be an excluded asset for the purposes of section 705‑35 on the assumption that tax cost