Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 16/19)
Character Range: 6319774–6322499

716‑85(1).
Note: For example, if a trust's net income for an income year must be worked out under section 268‑45 in Schedule 2F to the Income Tax Assessment Act 1936, the trust's assessable income attributed to a period (in the income year) for which it has a notional loss under section 268‑30 of that Act is not taken into account.
 (2) To the extent that the deductions of the partnership or trust for the income year were not taken into account in working out the amount referred to in section 716‑75, they are disregarded in applying paragraph 716‑80(1)(b) or subsection 716‑85(2).
Note: For example, in the case described in the note to subsection (1) of this section, the trust's deductions attributed to that period are not taken into account in working out the trust's net income for the income year.

716‑100  Spreading period
  The spreading period for the amount referred to in section 716‑75 is made up of each period:
 (a) that is all or part of the income year; and
 (b) throughout which the entity is a partner in the partnership or a beneficiary of the trust, as appropriate.

Subdivision 716‑E—Tax cost setting for exploration and prospecting assets

Table of sections
716‑300 Prime cost method of working out decline in value

716‑300  Prime cost method of working out decline in value
 (1) This section has effect if:
 (a) an entity (the joining entity) becomes a *subsidiary member of a *consolidated group at a time (the joining time); and
 (b) because of subsection 40‑80(1), the joining entity could (or did) deduct for a period before the joining time the *cost of a *depreciating asset that became an asset of the *head company of the group at the joining time because section 701‑1 (Single entity rule) applied to the joining entity; and
 (c) the joining entity could not deduct an amount under Subdivision 40‑B (except because of subsection 40‑80(1)) for the income year that includes the joining time for that cost.
Note: Subdivision 40‑B allows deductions for the decline in value of depreciating assets. Subsection 40‑80(1), which is in that Subdivision, provides that the decline in value of certain assets used for exploration and prospecting equals their cost.
 (2) Subsection 701‑55(2) has effect as if the *prime cost method for working out the decline in value of the *depreciating asset applied just before the joining time.
Note: This may affect both the method of working out the decline in value of the asset and the asset's effective life.

Subdivision 716‑G—Low‑value and software development pools

Table of sections

Assets in joining entity's low‑value pool
716‑330 Head company's deductions for decline in value of assets in joining entity's low‑value pool

Entity leaving group