Income Tax Assessment Act 1997
The *R & D entity has an amount under this section if: (a) a *balancing adjustment event happens in the present year for an asset *held by the R & D entity and for which:
(i) the R & D entity can deduct, for an income year, an amount under section 40-25 , as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or
(b) the R & D entity is entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-305 for the asset; and (c) an amount (the section 40-285 amount ) is included in the R & D entity ' s assessable income for the asset under section 40-285 (after applying subsection 40-292(2) ) for the present year.
(ii) the R & D entity could have deducted, for an income year, an amount as described in subparagraph (i) if the R & D entity had used the asset; and
This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-292 of the Income Tax (Transitional Provisions) Act 1997 ).355-447(2)
The amount is worked out as follows:
Total decline in value
|× Adjusted section 40-285 amount|
adjusted section 40-285 amount
means so much of an amount equal to the section 40-285 amount as does not exceed the total decline in value.