Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 405 - Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons  

Subdivision 405-C - Taxable professional income and average taxable professional income  

SECTION 405-45   405-45   Working out your taxable professional income  


Your taxable professional income for an income year is the amount (if any) by which your * assessable professional income for that year exceeds the amount of your deductions for that year worked out as follows: Method statement

Step 1.

Add up any amounts you can deduct for that year (except * apportionable deductions), so far as they reasonably relate to your * assessable professional income for the year.


Step 2.

Work out the amount using the formula:


*Apportionable
deductions
×     (*Assessable professional income - Sum from Step 1)    
Taxable income + *Apportionable deductions

Note:

The result may be greater than the apportionable deductions. Also, it may be negative.


Step 3.

Add the sum from Step 1 to the result from Step 2. If the result is more than nil, it is the amount of your deductions to be subtracted from your * assessable professional income.


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