Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p2
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/3)
Character Range: 220578–223408

forgiveness year of income for the reduction within the meaning of Division 245 of that Schedule.

Note: Therefore, the amount must be taken into account for the plant under paragraph (a) of the definition of undeducted cost in section 42-175. Also, because the amount is taken to have been deducted as at the first day of the income year, it will reduce the opening undeducted cost of the plant if you are using the diminishing value method.

Non-operative provisions

42-50  What are other "amounts deducted for depreciation"?

 (1) A number of provisions in this Division require you to work out the amounts you have deducted or can deduct for depreciation of plant. Apart from amounts you have deducted or can deduct under section 42-15, other amounts may need to be taken into account.

 (2) Those other amounts are:
 (a) amounts you have deducted or can deduct for depreciation under Division 28 using the "log book" method or the "one‑third of actual expenses" method; and
 (b) amounts you treat as having been deducted for depreciation under section 42-285 or 42-290 (balancing adjustment relief); and
 (c) amounts taken to be depreciation under paragraph 159GJ(1)(e) of the Income Tax Assessment Act 1936.

42-55  Signposting to other parts of the Act

Entertainment

 (1) Section 32-15 treats some property that is used for entertainment as not being used for the purpose of producing assessable income.

Environment

 (2) Even if you do not use property for the purpose of producing assessable income, you will be taken to do so in some circumstances. See section 330-455 (mine site rehabilitation) and sections 82BG and 82BR of the Income Tax Assessment Act 1936 (environmental impact or protection).

Debt forgiveness

 (3) Your deductions under this Division may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936.

Anti-avoidance

 (4) The anti-avoidance provisions in section 51AD, and Division 16D of Part III, of the Income Tax Assessment Act 1936 may deny a depreciation deduction.

Record-keeping

 (5) The rules in Division 900 requiring individuals and certain partnerships to keep written evidence of work expenses and car expenses apply to this Division.

 (6) There are special record-keeping rules that apply to this Division in section 262A of the Income Tax Assessment Act 1936.

Subdivision 42-B—Cost of plant

Guide to Subdivision 42-B

42-60  What this Subdivision is about

      A depreciation deduction for plant is based on its cost. This Subdivision tells you how to work out its cost.

Table of sections

Operative provisions

42-65 How to work out your cost
42-70 Adjustment: acquiring a car at a discount
42-75 Adjustment: non-arm's length transactions
42-80 Adjustment: car