Document ID: chunk:federal_register_of_legislation:C2010C00602:clause:7_8:p4
Version: federal_register_of_legislation:C2010C00602
Segment Type: clause
Provision Reference: sch 7 cl 8 (pt 4/5)
Character Range: 22393–25167

Expenditure incurred by transferee

 (3) If the expenditure was incurred by the transferee:
 (a) the transferor cannot deduct anything for the expenditure for the BAE year; and
 (b) the amount that can be deducted under subsection 328‑180(1) or 328‑190(2) for the expenditure for the BAE year is:
 (i) deductible by the transferee; or
 (ii) if there are 2 or more variations in the constitution of a relevant partnership or in the interests of the partners for the BAE year after the expenditure was incurred and a roll‑over is chosen for each variation—split equally between the partnerships concerned.

Special rule for expenditure on low‑cost assets

 (4) Subsection (5) applies if:
 (a) the transferor incurred the expenditure in relation to a *low‑cost asset; and
 (b) a *balancing adjustment event occurs for that asset before the BAE day.

 (5) The transferee cannot deduct anything for the expenditure for the BAE year, and subsection 328‑215(4) does not apply to the transferee in relation to the asset.

328‑255  Closing pool balance etc. below zero

 (1) This section applies if:
 (a) the *closing pool balance of the transferor's *general STS pool or *long life STS pool for the BAE year is less than zero; or
 (b) the amount worked out under subsection 328‑210(2) for that pool for the BAE year is less than zero;
because a *balancing adjustment event occurred for an asset allocated to that pool during that year.

 (2) The amount included in assessable income under subsection 328‑215(2) is split equally between:
 (a) the transferor and transferee; or
 (b) if there are 2 or more variations in the constitution of a relevant partnership or in the interests of the partners for the BAE year and a roll‑over is chosen for each variation—the partnerships concerned.

328‑257  Taxable use

 (1) This section applies to *depreciating assets (the previously held assets) that were *held by the transferor just before the *balancing adjustment events occurred.

 (2) Subsection 328‑205(1) (about estimates of taxable use) does not apply to previously held assets in the hands of the transferee for the BAE year. Instead, the transferee uses for the BAE year:
 (a) the estimate made by the transferor under that subsection for the asset; or
 (b) if the transferor had made one or more estimates for the asset under subsection 328‑225(1) that resulted in an adjustment under section 328‑225 (about change in business use)—that estimate or the most recent of those estimates.

 (3) Section 328‑225 applies to the transferee for each previously held asset for income years after the BAE year as if:
 (a) the transferee had *held the asset during the period that the transferor held it; and
 (b) estimates applicable to the transferor for the asset under that section