Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:3_1
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 3 cl 1
Character Range: 163366–164427

1  At the end of section 42‑25
Add:

Exception: plant acquired from associate

 (4) For *plant that you acquire from an *associate of yours where the associate has deducted or can deduct an amount for the plant under this Division, you must use the same method the associate was using.

Exception: owner changes but user same or associate of former user

 (5) For *plant that you acquire from a former owner or *quasi‑owner of the plant, you must use the same method that the former owner or quasi‑owner was using for the plant if:
 (a) the former owner or quasi‑owner or another entity (each of which is the former user) was using the plant at a time before you became its owner or quasi‑owner; and
 (b) while you are the owner or quasi‑owner of the plant, the former user or an *associate of the former user uses the plant.

 (6) However, you must use the *diminishing value method if:
 (a) you do not know, and cannot readily find out, which method the former owner or *quasi‑owner was using; or
 (b) the former owner or quasi‑owner did not use a method.