• Item 10 Disposal losses - post-29 January 2001

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Notes on balancing adjustments - item 10

    You may need to make balancing adjustments under subsection 73BF of ITAA 1936 or section 40-292 of ITAA 1997 if section 73BA depreciating assets are disposed of (section 40-295 of ITAA 1997). If the termination value of the asset at the time of disposal is different from its adjustable value just before the event occurred (section 40-300 of ITAA 1997), you will need to make a balancing adjustment. Record the amount of this balancing adjustment at item 10 for a loss or at item 11 for a profit (negative).

    If the section 73BA depreciating asset has never attracted deductions under Divisions 42 or 40 of ITAA 1997, calculate the balancing adjustment under section 73BF. For section 73BA depreciating assets that have attracted such deductions, calculate the balancing adjustment under section 40-292 of ITAA 1997.

    Further Information

    Before starting item 10 see the Guide to depreciating assets and the Guide to the R&D tax concession.

    End of further information

    If the company is entitled to deduct an amount under section 40-292 of ITAA 1997 following a balancing adjustment event (such as disposal), include the amount of any part of the balancing adjustment that the company is entitled to increase by 25% under the formula in subsection 40-292(4) of ITAA 1997, in the calculation of the base amount for item 10.

    If the company is entitled to deduct an amount under section 73BF of ITAA 1936 following a balancing adjustment event, include at item 10 the amount of any part of the balancing adjustment that the company is entitled to increase by 25% under the formula in subsection 73BF(3) of ITAA 1936.

    At K enter the amount of any balancing adjustment (deduction) (the base amount).

    At N enter the amount of any balancing adjustment (deduction) amounts claimable at 100%.

    At O enter the amount of any balancing adjustment (deduction) amounts claimable at 125%.

    Attention

    The total of the amounts at N and O must equal the amounts included in the base amount otherwise, a warning message 'Your claim does not balance' will display in the Excel spreadsheet.

    End of attention

    More information

    For more information, see:

    Last modified: 24 Jun 2008QC 18884