Taxation Ruling
IT 2398W - Withdrawal
Income tax: depreciation of co-owned property
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Please note that the PDF version is the authorised version of this withdrawal notice.
FOI status:
may be releasedNotice of Withdrawal
Taxation Ruling IT 2398 is withdrawn with effect from today.
1. Taxation Ruling IT 2398, which issued on 7 May 1987, deals with the question of whether subsection 54(1) of the Income Tax Assessment Act 1936 (ITAA 1936), operates only where a taxpayer has full and complete ownership of the property or whether it also operates where a taxpayer is a joint or co-owner of the property. Subsection 54(1) of the ITAA 1936 allowed an income tax deduction for depreciation in respect of plant or articles owned by a taxpayer and used by them during the year of income for the purpose of producing assessable income.
2. From 1 July 2001, deductions for depreciating assets are dealt with under the uniform capital allowance regime, contained in Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997).
3. From 1 July 2001, section 40-35 of the ITAA 1997 applies in the circumstances covered in Taxation Ruling IT 2398.
4. As the legislation dealt with in Taxation Ruling IT 2398 no longer applies, the Ruling is withdrawn.
Commissioner of Taxation
15 December 2004