INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-C - Cost  

Operative provisions

SECTION 40-225   Adjustment: acquiring a car at a discount  

40-225(1)  
You must increase the first element of the cost of a * car designed mainly for carrying passengers you acquire at a discount if:


(a) it is reasonable to conclude that any portion (the discount portion ) of the discount is referable to you or another entity selling another asset for less than its * market value; and


(b) you, or another entity, has deducted or can deduct an amount for the other asset for any income year; and


(c) the sum of the cost of the car and the discount portion exceeds the * car limit for the * financial year in which you first use the car for any purpose.

40-225(2)  
The first element of the cost of the * car is increased by the discount portion.

40-225(3)  
This section does not apply to a * car that is excluded from the * car limit by subsection 40-230(2) .


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