Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-120   Transitional - deduction for payment of rent from land investment by operating entity to asset entity  

25-120(1)  
This section applies if the requirements in subsection 12-440(1) or (2) in Schedule 1 to the Taxation Administration Act 1953 are satisfied in relation to a *cross staple arrangement.

25-120(2)  
An entity that is an *operating entity in relation to the *cross staple arrangement can deduct, for an income year, an amount of *rent from land investment if:


(a) another entity derives or receives the amount from the operating entity at a time that:


(i) is in the income year; and

(ii) is on or after 27 March 2018; and

(iii) meets the requirements in subsection 12-440(4) of Schedule 1 to the Taxation Administration Act 1953 ; and


(b) the other entity is an *asset entity in relation to the cross staple arrangement; and


(c) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and


(d) the amount is *excepted MIT CSA income of the asset entity for the income year.

25-120(3)  
If the *asset entity is not a *managed investment trust in relation to the income year, for the purposes of paragraph (2)(d), treat it as a managed investment trust in relation to the income year.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.