Income Tax (Transitional Provisions) 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-B - Core provisions  

SECTION 40-44   No additional decline in certain cases  

40-44(1)    
Despite subsections 40-35(5) , 40-38(5) and 40-40(4) , there is no additional decline in the value of the notional asset referred to in those subsections if:

(a) apart from this section, subsection 40-35(5) , 40-38(5) or 40-40(4) would apply because the real asset referred to in that subsection is disposed of; and

(b) roll-over relief is chosen under subsection 40-340(3) of the Income Tax Assessment Act 1997 for the disposal.

40-44(2)    
Instead, the cost to the transferee of that real asset is the sum of:

(a) the adjustable value of that real asset; and

(b) the adjustable value of the notional asset referred to in subsection 40-35(5) , 40-38(5) or 40-40(4) ;

just before the disposal.