Income Tax Assessment Act 1997
SECTION 43-140 Using your area in a deductible way 43-140(1)
The following table sets out the way you must use * your area in an income year for a deduction to be allowed under section 43-10 (the main deduction provision). The relevant use depends on the time when the capital works began (Column 1) and the type of capital works (Column 2). Column 3 sets out the use.
TABLE 43-140 - Current year use
Column 1 | Column 2 | Column 3 | |
Date capital works begin | Type of capital works | Use of your area at some time in the income year | |
Time period 1: After 30/6/97 | Any capital works | You use *your area for the purpose of: | |
(a) | producing assessable income; or | ||
(b) | conducting *R & D activities. | ||
Time period 2: 27/2/92 to 30/6/97 (inclusive) | *Hotel building | You use *your area for the *purpose of producing assessable income. | |
*Apartment building | You use *your area for the *purpose of producing assessable income. | ||
Other capital works | You use *your area for the purpose of: | ||
(a) | producing assessable income; or | ||
(b) | conducting *R & D activities. | ||
Time period 3: Before 27/2/92 | *Hotel building | You use *your area for the *purpose of producing assessable income and: | |
(a) | all or part of that area is used by any entity wholly or mainly to operate a hotel, motel or guest house; and | ||
(b) | that hotel, motel or guest house has at least 10 bedrooms that are used or available for use wholly to provide short-term accommodation for travellers. | ||
*Apartment building | You use *your area for the *purpose of producing assessable income and: | ||
(a) | that area is, is part of or contains an apartment, unit or flat that is used or available for use by any entity wholly to provide short-term accommodation for travellers, and you own or lease at least 9 other apartments, units or flats in the building that are used or available for use by any entity wholly to provide short-term accommodation for travellers; or | ||
(b) | that area is, is part of or contains a facility that is used or available for use by any entity wholly or mainly in association with providing short-term accommodation for travellers in apartments, units or flats in the building that are used in the way described in paragraph (a). | ||
Other capital works | You use *your area for the purpose of: | ||
(a) | producing assessable income; or | ||
(b) | conducting *R & D activities. |
Note 1:
There are special rules that explain or qualify the uses described in Column 3 of this Table. These rules are set out in Subdivision 43-E (sections 43-155 to 43-195 ). For example:
Note 2:
If Division 250 applies to you and an asset that is a capital work:
43-140(2)
This Division applies to an entity as if the entity used property for the * purpose of producing assessable income if the entity uses the property for:
(a) * environmental protection activities; or
(b) the environmental impact assessment of a project;
unless a provision of this Act expressly provides that that use is not for the purpose of producing assessable income.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.