Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_13
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 13
Character Range: 59374–61850

13                                                 You started to *hold a *depreciating asset because it *passed to you as the beneficiary or a joint tenant                                                                                                                 The *market value of the asset when you started to hold it reduced by any *capital gain that was disregarded under section 128‑10 or subsection 128‑15(3), whether by the deceased or by the *legal personal representative

40‑185  Amount you are taken to have paid to hold a depreciating asset or to receive a benefit

 (1) This Division applies to you as if you had paid, to *hold a *depreciating asset or for an economic benefit for such an asset, the greater of these amounts:
 (a) the sum of the amounts that would have been included in your assessable income because you started to hold the asset or received the benefit, or because you gave something to start holding the asset or receive the benefit, if you ignored the value of anything you gave that reduced the amount actually included; or
 (b) the sum of the applicable amounts set out in this table for holding the asset or receiving the benefit.

Example: Gold Medals Ltd manufactures some medals for a local sporting association's annual meeting in return for a die cut stamping machine. The medals have a market value of $20,000. The machine has an arm's length value of $100,000 but Gold Medals has to contribute $75,000 towards acquiring it from the association. Gold Medals will have to include:

 in its assessable income because of section 21A of the Income Tax Assessment Act 1936.

 The first element of the machine's cost will be the greater of:
                * the amount it paid ($75,000) plus the market value of the non‑cash benefits it provided ($20,000), which comes to $95,000; and
                * the amount that was assessable income from receiving the machine ($25,000) plus the amount by which that assessable income was reduced because of the payment Gold Medals made ($75,000), which comes to $100,000.

 So, in this case, the first element of the machine's cost to Gold Medals is $100,000.

Amount you are taken to have paid to hold a depreciating asset or to receive a benefit
Item                                                                                    In this case:                                                                                                                           The amount is: