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 124ZZG   124ZZG   WHEN CAN A TAXPAYER GET AN ANNUAL DEDUCTION FOR ESTABLISHMENT EXPENDITURE?  
If:


(a) there is an amount of establishment expenditure for a horticultural plant; and


(b) the number of years in the effective life of the plant is 3 or more; and


(c) at a particular time during a year of income, a 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; and


(d) the taxpayer owned the plant at that time; and


(e) that time is within the maximum write-off period for the plant;

the amount worked out under section 124ZZH is allowable as a deduction to the taxpayer for the year of income.

Note 1:

Establishment expenditure is defined by section 124ZZJ .

Note 2:

Effective life is defined by section 124ZZK .

Note 3:

Ownership is given an extended meaning in relation to leases and licences by section 124ZZQ .

Note 4:

Maximum write-off period is defined by section 124ZZI .


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