INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10F - Deduction for capital expenditure incurred in establishing horticultural plants  

Subdivision C - 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:

(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 ).

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 ).