Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_2:p1
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/3)
Character Range: 217919–220821

2                                     the *quasi-owner of *plant  (a)  you cease to be the *quasi-owner of it and do not become its owner; or
                                                                  (b) it is lost or destroyed; or
                                                                  (c) subsection 42-330(2) applies.

Note: Section 42-330 deals with partial change of ownership.

42-35  Application of Division 41 Common rules

  The following Common rules apply to this Division:
 (a) Common rule 1 (roll-over relief for related entities);
 (b) Common rule 2 (non-arm's length transactions);
 (c) Common rule 3 (anti-avoidance—ownership).

For modifications to Common rule 1, see sections 42-275 and 42-280.

For modifications to Common rule 2, see sections 42-75 and 42‑210.

42-40  Choices

 (1) Any choice you are required to make under this Division must be made:
 (a) by the day you lodge your *income tax return for the income year to which the choice relates; or
 (b) within a further time allowed by the Commissioner.

 (2) Your choice, once made, applies to that income year and all later income years.

42-45  Exclusions

Primary production expenditure

 (1) You cannot deduct an amount for depreciation of *plant if any expenditure incurred on it by any entity has been or can be deducted under Subdivision 387-A (Landcare operations) or 387-B (Facilities to conserve or convey water).

Research and development plant

 (2) You cannot deduct an amount for depreciation of *plant that you have *installed ready for use exclusively for the purpose of carrying on *research and development activities unless you have elected under subsection 73B(18) of the Income Tax Assessment Act 1936 that the research and development provisions are not to apply to the plant.

Leisure facilities and boats

 (3) You cannot deduct an amount for depreciation of a *leisure facility or a boat unless, at some time in the income year:
 (a) its use constitutes a *fringe benefit; or
 (b) you use the leisure facility or hold it for use as mentioned in subsection 26-50(3); or
 (c) you use the boat or hold it for use as mentioned in
paragraph 26-50(5)(b), (c) or (d).

42-48  Debt forgiveness: amounts deducted for depreciation

 (1) An amount applied in reduction of deductible expenditure (within the meaning of Division 245 of Schedule 2C to the Income Tax Assessment Act 1936) for *plant under section 245-155 of that Schedule is taken to be an amount you have deducted under section 42-15 for depreciation of the plant.

 (2) The amount is taken to have been deducted as at the first day of your income year that corresponds to the forgiveness year of income for the reduction within the meaning of Division 245 of that Schedule.

Note: Therefore, the amount must be taken into account for the plant under paragraph (a) of the definition of undeducted cost in section 42-175.