Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 9/13)
Character Range: 1004444–1007096

value just before the *balancing adjustment event occurred from the car's *termination value.
           Step 2. Reduce the step 1 amount by the part of the *car's decline in value that is attributable to your using the car, or having it *installed ready for use, for purposes other than *taxable purposes. You do this by applying the formula in subsection 40‑290(2).
           Step 3. Multiply the step 2 amount by the total number of days for which you deducted the decline in value of the *car under this Division.
           Step 4. Divide the step 3 amount by the total number of days you *held the *car.
           Step 5. The step 4 amount is a deduction if it is negative or it is included in your assessable income if it is positive.
 (3) In working out the *adjustable value for the income years for which you chose the "cents per kilometre method", assume the decline in value was calculated under this Division on the same basis as those income years when that method did not apply.
 (4) In working out the reduction in step 2 for the income years for which you chose the "cents per kilometre method", assume that:
 (a) you had not chosen that method for the *car; and
 (b) Division 28 (about car expenses) had not applied to the car; and
 (c) 20% was the extent of your use of the car for *taxable purposes.

Subdivision 40‑E—Low‑value and software development pools

Guide to Subdivision 40‑E

40‑420  What this Subdivision is about

      You may choose to work out the decline in value of low‑cost assets (assets costing less than $1,000) and certain other depreciating assets through a low‑value pool.
      You may also choose to deduct amounts for expenditure you incur on in‑house software through a software development pool.

Table of sections

Operative provisions
40‑425 Allocating assets to a low‑value pool
40‑430 Rules for assets in low‑value pools
40‑435 Private or exempt use of assets
40‑440 How you work out the decline in value of assets in low‑value pools
40‑445 Balancing adjustment events
40‑450 Software development pools
40‑455 How to work out your deduction
40‑460 Your assessable income includes consideration for pooled software

Operative provisions

40‑425  Allocating assets to a low‑value pool
 (1) You may choose to allocate a *low cost asset you *hold to a low‑value pool for the income year in which you start to use it, or have it *installed ready for use, for a *taxable purpose.
 (2) A low‑cost asset is a *depreciating asset (except a *horticultural plant) whose *cost as at the end of the income year in which you start to use it, or have it *installed ready for use, for a *taxable purpose is less