INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
PART III
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LIABILITY TO TAXATION
Division 10F
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Deduction for capital expenditure incurred in establishing horticultural plants
The amount of the section 124ZZG deduction is worked out using the following formula:
(a) throughout that day, the taxpayer used the plant, or held the plant ready for use:
(i) for the purpose of producing assessable income; and
(ii) in a business of horticulture;
(b) the taxpayer owned the plant throughout that day;
(c) that day is within the maximum write-off period for the plant (worked out under section
124ZZI
).
Subdivision C
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Annual deduction where the effective life of a plant is 3 or more years
SECTION 124ZZH
124ZZH
HOW MUCH CAN BE DEDUCTED EACH YEAR?
The amount of the section 124ZZG deduction is worked out using the following formula:
Annual write-off rate | × |
Write-off days in year
Days in year |
× | Establishment expenditure |
where:
Annual write-off rate is worked out under section 124ZZI .
Write-off days in year means the number of whole days in the year of income, where all of the following conditions are satisfied:
Days in year means the number of days in the year of income.
Establishment expenditure means the amount of establishment expenditure for the plant (worked out under section 124ZZJ ).
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