Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_8:p2
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 2/4)
Character Range: 249560–252127

you are taken to have deducted for depreciation of the plant under subsection 42-48(2) (debt forgiveness).

Note: You cannot deduct more than the undeducted cost of the plant.

42-170  Reducing deductions

General

 (1) Reduce your deduction by an amount that reasonably reflects the extent (if any) you neither used the *plant, nor had it *installed ready for use, for the *purpose of producing assessable income during the period in the income year you were its owner or *quasi-owner.

Leisure facilities and boats

 (2) You may have to make a further reduction if your *plant is a *leisure facility or a boat. That reduction is made for any period in the income year during which you:
 (a) were its owner or *quasi-owner; and
 (b) used it, or had it *installed ready for use, for the *purpose of producing assessable income.

 (3) The reduction must reflect the extent (if any) to which you did not satisfy any of the exceptions in paragraphs 42-45(3)(a), (b) and (c) for the *leisure facility or boat in that period.

Note: Paragraphs 42-45(3)(a), (b) and (c) set out the limited circumstances in which you can deduct an amount for a leisure facility or a boat.

42-175  Meaning of undeducted cost

  The undeducted cost of *plant is its *cost less the sum of:
 (a) for plant that is not a *car—the amounts you have deducted or can deduct for depreciation of the plant; and
 (b) for plant that is not a car—any further amounts you could have deducted for depreciation of the plant for any period you were its owner or *quasi-owner and used it, or had it *installed ready for use, assuming that:
 (i) you used it wholly for the *purpose of producing assessable income during that period; and
 (ii) you used the same rate and method during that period as you used for the income year in which a depreciation deduction was first allowable to you for the plant; and
 (iii) no provision of this Act denied a depreciation deduction for it; and
 (c) if the plant is a car—the amounts you could have deducted under this Division for any period you were its owner and used it, or had it installed ready for use, assuming that:
 (i) you used it wholly for the purpose of producing assessable income during that period; and
 (ii) you used the same rate and method during that period as you used for the income year in which a depreciation deduction was first allowable to you for the car; and
 (iii) no provision of this Act denied a depreciation deduction for it; and
 (iv) Division 28 (Car expenses) did not apply; and
 (d) if Common rule 1 applied to your acquisition