Division 250 of the Income Tax Assessment Act 1997 (ITAA 1997) (assets put to tax-preferred use) could apply in relation to project pools, land the subject of environmental protection activities, landcare operations and water facilities. If Division 250 applies, the deduction in relation to these assets may be limited or denied. Broadly, Division 250 applies to leasing and similar arrangements between taxpayers and tax-preferred end users (such as tax-exempt entities and non-residents) for the financing and provision of infrastructure and other assets. It applies to arrangements entered into on or after 1 July 2007. Division 250 does not apply to certain relatively short-term and lower value arrangements. See our website for more information.
Note: When you have completed your Business and professional items schedule for individuals 2008, you will need to transfer:
- your Net Personal services income (PSI) amount (if any) from A item P1 on your schedule to A item 14 on page 9 of your tax return (supplementary section)
- your Net income or loss from business amounts from Y and Z item P8 on your schedule to B and C (respectively) item 15 on page 10 of your tax return (supplementary section).