Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 13/34)
Character Range: 5108620–5111434

pool under subsection 328‑185(3).
 (2) For a later income year, the opening pool balance of your *general small business pool is that pool's *closing pool balance for the previous income year, reduced or increased by any adjustment required under section 328‑225 (about change in the business use of an asset).
Note: You continue to deduct amounts using your general small business pool even if you are not a small business entity, or do not choose to use this Subdivision, for a later income year: see section 328‑220.
 (3) However, if:
 (a) you are not a *small business entity for an income year or you do not choose to use this Subdivision for that year; but
 (b) you are a small business entity for a later income year and you choose to use this Subdivision for the later year;
the opening pool balance of your *general small business pool includes the sum of the *taxable purpose proportions of the *adjustable values of *depreciating assets allocated to the pool under subsection 328‑185(3) for that year.

328‑200  Closing pool balance
  You work out the closing pool balance of your *general small business pool for an income year in this way:

      Method statement
           Step 1. Add to the *opening pool balance of the pool for the income year:

                (a) the sum of the *taxable purpose proportions of the *adjustable values of *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during the income year and that are allocated to the pool; and
                (b) the taxable purpose proportion of any cost addition amounts (see subsection 328‑190(3)) for the income year for assets allocated to the pool.

           Step 2. Subtract from the step 1 amount:

                (a) the *taxable purpose proportions of the *termination values of *depreciating assets allocated to the pool and for which a *balancing adjustment event occurred during the income year; and
                (b) your deduction under subsection 328‑190(1) for the pool for the income year; and
                (c) your deductions under subsection 328‑190(2) for *depreciating assets you started to use, or have *installed ready for use, for a *taxable purpose during the income year and that are allocated to the pool; and
                (d) your deductions under subsection 328‑190(3) for the income year for cost addition amounts for assets allocated to the pool.

           Step 3. The result is the closing pool balance of the pool for the income year.
Note: A transferor does not subtract anything for certain balancing adjustment events under paragraph (a) of step 2 if roll‑over relief under section 40‑340 is chosen: see sections 328‑243 and 328‑245.

328‑205  Estimate of taxable use
 (1) You must, for the first income year for which you are, or last