Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 16/41)
Character Range: 4272239–4274910

and
 (c) the asset would have had an *adjustable value at that time, for the purposes of Division 40, if this Division had never applied to the asset;
the adjustable value of the asset, immediately after the end of the arrangement period, is taken to be equal to the amount worked out using the following method statement:

      Method statement
           Step 1. Work out whether section 250‑150 applies.
           Step 2. If section 250‑150 does not apply, the amount is the *end value of the asset at the end of the arrangement period.
           Step 3. If section 250‑150 does apply, the amount is worked out by:

                (a) multiplying the *end value of the asset at the end of the *arrangement period by the *disallowed capital percentage; and
                (b) then multiplying the adjustable value of the asset at the end of the arrangement period (worked out under section 40‑85) by 100% minus the disallowed capital percentage); and
                (c) then adding the amount obtained under paragraph (a) and the amount obtained under paragraph (b).
 (2) If:
 (a) this Division applies to you and an asset; and
 (b) the *arrangement period for the *tax preferred use of the asset ends; and
 (c) a net amount is included in your assessable income in relation to the *financial benefits that are *subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250‑E in relation to the financial benefits that are subject to the deemed loan treatment);
the *cost base, and the *reduced cost base, of the asset are each taken to be reduced at the end of the arrangement period by an amount equal to the difference between:
 (d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
 (e) the net amount referred to in paragraph (c).
Note: See subsection (6) in relation to the application of paragraph (d).
 (3) If:
 (a) this Division applies to you and an asset; and
 (b) the *arrangement period for the *tax preferred use of the asset ends; and
 (c) a net amount is allowed to you as a deduction in relation to the *financial benefits that are *subject to the deemed loan treatment (taking into account the adjustments under Subdivision 250‑E in relation to the financial benefits that are subject to the deemed loan treatment);
the *cost base, and the *reduced cost base, of the asset are each taken to be reduced at the end of the arrangement period by an amount equal to the sum of:
 (d) the total amounts or values of the financial benefits that were subject to deemed loan treatment; and
 (e) the net amount referred to in paragraph (c).
Note: See subsection (6) in