Document ID: chunk:federal_register_of_legislation:C2010C00679:section:1987:p14
Version: federal_register_of_legislation:C2010C00679
Segment Type: section
Provision Reference: s 1987 (pt 14/51)
Character Range: 46262–48962

using the formula:
               Opening value   -   Reduction amount
where:
  'Opening value' means the opening value in relation to the horse in relation
to the year of income;
  'Reduction amount' means the reduction amount in relation to the horse in
relation to the year of income.
(Opening value)
  "(7) For the purposes of this section, the opening value in relation to a
horse in relation to a year of income (the 'current year of income') is:
  (a) if:
    (i) the horse was live stock of the taxpayer at the end of the
year of income immediately preceding the current year of income; and
    (ii) the horse was live stock of the taxpayer during the whole of
the current year of income;
the value of the horse taken into account at the end of the preceding year of
income; or
  (b) if the horse became live stock of the taxpayer at a time during the
current year of income - whichever is the lesser of:
    (i) the cost price of the horse; or
    (ii) the depreciated value of the horse, within the meaning of
section 62, at that time.
(Reduction amount - male horse)
  "(8) For the purposes of this section, the reduction amount in relation to a
male horse in relation to the year of income is the amount worked out using
the formula:
                                               Holding days in
                                               year of income
     Base amount  X  Nominated percentage  X   ________________
                                               Total days in year
                                                     of income
where:
  'Base amount' means whichever is the lesser of:
  (a) the cost price of the horse; or
  (b) the depreciated value of the horse, within the meaning of section 62, at
the time the horse became live stock of the taxpayer;
  'Nominated percentage' means the percentage, not exceeding 25%, nominated by
the taxpayer at the same time as the taxpayer selects the option referred to
in paragraph (2)(a);
  'Holding days in year of income' means:
  (a) if the horse was held by the taxpayer for breeding purposes during the
whole of the year of income - the number of days in the year of income; or
  (b) if the taxpayer commenced to hold the horse for breeding purposes during
the year of income - the number of whole days in so much of the year of income
as occurred after that commencement;
  'Total days in year of income' means the number of days in the year of
income.
(Reduction amount - female horse less than 12 years old)
  "(9) If a female horse has not attained the age of 12 years before the end
of the year of income, then, for the purposes of this section, the reduction
amount in relation to the horse in relation to the