INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10A - Timber operations and timber mill buildings  

Subdivision B - Timber mill buildings  

SECTION 124JB   DISPOSAL, DESTRUCTION OR TERMINATION OF USE OF BUILDING  

124JB(1)   [Application]  

This section applies where deductions have been allowed or are allowable under section 124JA in respect of expenditure of a capital nature on a building and, in the year of income, the building has been disposed of or destroyed, or the use by the taxpayer of the building for the purpose for which it was primarily and principally constructed or purchased has been otherwise terminated.

124JB(2)   [Value in excess of residual capital expenditure]  

Where:

(a) the consideration receivable in respect of the disposal or destruction of the building; or

(b) in the case of other termination of the use of the building, the value of the building at the date of the termination of use,

exceeds the residual capital expenditure in respect of the building immediately before the time of the disposal, destruction or termination of use, so much of the amount of the excess as does not exceed the sum of the deductions allowed or allowable under section l24JA in respect of expenditure in respect of the building shall be included in the assessable income.

124JB(3)   [Residual capital expenditure in excess of value]  

Where the residual capital expenditure in respect of the building immediately before the time of the disposal, destruction or termination of use exceeds:

(a) the consideration receivable in respect of the disposal or destruction of the building; or

(b) in the case of other termination of the use of the building, the value of the building at the date of the termination of use,

the amount of the excess shall be an allowable deduction.

124JB(4)   [``consideration receivable'']  

In this section, the consideration receivable in respect of the disposal or destruction means:

(a) in the case of a sale of the building - the sale price less the expenses of the sale of the building;

(b) in the case of destruction of the building - the amount or value received or receivable under a policy of insurance or otherwise in respect of the destruction;

(c) in the case where the building is sold with other property and no separate value is allocated to the building - the amount determined by the Commissioner; and

(d) in the case where the building is disposed of otherwise than by sale - the value, if any, of the building at the date of disposal,

but does not include an amount that is included, or will, when received, be included, in the assessable income of any year of income under section 26AB or Division 4 .