Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p23
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 23/24)
Character Range: 468255–470910

on a *forestry road or a *timber mill building if the sum of the amounts that you have deducted or can deduct under this Subdivision for that expenditure for earlier income years equals that expenditure.

Note: Take account of amounts deducted or deductible under section 124F or 124JA of the Income Tax Assessment Act 1936 for the road or building. See section 387‑472 of the Income Tax (Transitional Provisions) Act 1997.

When you have deducted or can deduct amounts otherwise

 (2) You cannot deduct an amount under this Subdivision for the *current year for your expenditure on a *forestry road or a *timber mill building if:
 (a) you can deduct, or have deducted, an amount for the expenditure under a provision of this Act (other than this Subdivision) for the *current year or an earlier income year; or
 (b) the expenditure is being, or was, taken into account in calculating the amount of one of your deductions for the *current year or an earlier income year under a provision of this Act (other than this Subdivision).

Note: Disregard amounts deducted or deductible under section 124F or 124JA of the Income Tax Assessment Act 1936 for the road or building. See section 387‑472 of the Income Tax (Transitional Provisions) Act 1997.

When the road or building has been disposed of or destroyed, or is no longer used

 (3) You cannot deduct an amount under section 387‑460 for the *current year for your expenditure on a *forestry road or a *timber mill building if, during the current year or an earlier income year:
 (a) you disposed of the road or building; or
 (b) the road or building was destroyed; or
 (c) for some other reason, you stopped using it for the purpose for which it was primarily and principally constructed or acquired.

Note: Although you cannot deduct an amount under section 387‑460 if you have stopped using, or disposed of, the road or building or it has been destroyed, you may be able to deduct an amount because of the balancing adjustment that you must make in this case. See
section 387‑485.

Balancing adjustments

387‑485  Making a balancing adjustment when an event stops you deducting

 (1) You must make a balancing adjustment for the *current year if:
 (a) you have deducted or can deduct an amount for an earlier income year under this Subdivision for your capital expenditure relating to constructing or acquiring a *forestry road or a *timber mill building; and
 (b) one or more of the following events happens during the current year:
 (i) you dispose of the road or building in circumstances in which Subdivision 41-A (which sets out Common
rule 1 dealing with roll-over relief for related entities)