Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 16/34)
Character Range: 5116028–5118635

*termination values of depreciating assets allocated to the pool and for which a *balancing adjustment event occurred during the income year.
 (3) In that case, the *closing pool balance of the pool for that income year then becomes zero.
Example: Amanda's Graphics is a small business entity for the 2014‑15 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $8,500 for its general small business pool for that year.
 During that year, Amanda acquired a new computer for $2,000. The taxable purpose proportion of its adjustable value is:
 $2,000 x 80% business use estimate = $1,600
 Amanda also sold her business car for $9,600 during that year. The car was used 100% in the business.
 To work out whether she can deduct an amount under this section, Amanda uses this calculation:
 $8,500 + $1,600 ‑ $9,600 = $500
 Because the result is less than $1,000, Amanda can deduct the $500 for the income year. The pool's closing balance for the year is zero.

328‑215  Disposal etc. of depreciating assets
 (1) This section sets out adjustments you may have to make if a *balancing adjustment event occurs for a *depreciating asset for which you calculate your deductions under this Subdivision.
 (2) If the asset is allocated to your *general small business pool and:
 (a) the *closing pool balance of the pool for the income year in which the event occurred is less than zero; or
 (b) the amount worked out under subsection 328‑210(2) for that income year is less than zero;
the amount by which that balance or amount is less than zero is included in your assessable income for that year.
 (3) In that case, the *closing pool balance of the pool for that income year then becomes zero.
 (4) If the asset was one for which you deducted an amount under section 328‑180 (about assets costing less than $1,000), you include the *taxable purpose proportion of the asset's *termination value in your assessable income.

328‑220  What happens if you are not a small business entity or do not choose to use this Subdivision for an income year
 (1) If you are not a *small business entity for an income year or you do not choose to use this Subdivision for that year, this Subdivision continues to apply to your *general small business pool for that year and later income years.
 (2) However, *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during an income year for which you are not a *small business entity or do not choose to use this Subdivision cannot be allocated to your *general small business pool under