Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/41)
Character Range: 4240030–4242736

it were a *depreciating asset; or
 (iii) would be a privatised asset if the asset were a depreciating asset and paragraphs 58‑5(2)(a) and 58‑5(4)(a) were not limited to acquisitions of depreciating assets that occurred on or after 1 July 2001.
The relevant percentage is the *disallowed capital allowance percentage if section 250‑150 applies. Otherwise it is 100%.
Note: See section 250‑180 for how to work out the end value of the asset.

Financial benefits only subject to deemed loan treatment to the extent to which they represent a return on investment
 (3) The *financial benefit is subject to deemed loan treatment only to the extent to which it reasonably represents a return of, or on, an investment in the asset (as distinct, for example, from representing consideration for the provision of services or the recovery of production costs), having regard to:
 (a) the *market value of the asset; and
 (b) the discount rate applicable under subsection 250‑105(2); and
 (c) your costs in relation to funding your interest in the asset; and
 (d) any other relevant matter.
The regulations may provide rules to be applied in determining the extent to which a financial benefit reasonably represents a return of or on an investment in the asset.

Only financial benefits provided after Division starts applying to you and the asset
 (4) If the *tax preferred use of the asset starts before this Division starts applying to you and the asset, only *financial benefits provided after this Division starts applying to you and the asset are subject to deemed loan treatment.

250‑180  End value of asset
 (1) The end value of an asset is worked out in accordance with this section.
 (2) If the asset has a *guaranteed residual value, the end value of the asset is:
 (a) the amount of the guaranteed residual amount if subparagraph 250‑15(d)(i) applies; or
 (b) so much of the amount referred to in paragraph (a) as is attributable to the expenditure referred to in subparagraph 250‑15(d)(ii) if that subparagraph applies.
 (3) If the asset does not have a *guaranteed residual value and is a *depreciating asset, the end value of the asset is:
 (a) if subparagraph 250‑15(d)(i) applies—the amount that would have been the *adjustable value of the asset at the end of the *arrangement period if:
 (i) this Division had not applied to you and the asset; and
 (ii) the decline in the asset's value were worked out on the basis of the asset's *effective life and using the *prime cost method; or
 (b) if subparagraph 250‑15(d)(ii) applies—so much of the amount referred to in paragraph (a) as is attributable to the expenditure referred to in that subparagraph.
 (4) Disregard section 40‑102 in working out the