Taxation Determination
TD 92/142
Income tax: what is the opening value of a unit of property, for the purposes of calculating depreciation, if the unit was previously used for purposes other than producing assessable income?
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FOI status:
may be releasedFOI number: I 1213126This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue. |
1. The opening value of a unit is its original cost to the taxpayer less the amount of any depreciation that would have been allowed if the unit had been used to produce assessable income: section 61 of the Income Tax Assessment Act 1936 and FC of T v. Anderson (1956) 11 ATD 115; 6 ATR 324.
2. Accelerated depreciation (if applicable) should be applied when calculating the rate of depreciation unless the taxpayer has elected to not have the accelerated rates apply.
3. This determination applies in situations where:
- (i)
- a previously tax exempt entity becomes assessable, or plant that was previously used in the production of exempt income is used in the production of assessable income, or
- (ii)
- plant or articles are held for private purposes before being used in producing assessable income, or
- (iii)
- plant was previously used in the production of income that was not assessable.
Example:
Commissioner of Taxation
20 August 1992
References
ATO references:
NO ADVC 1318(MEL)
Subject References:
depreciation
opening value
notional depreciated value
Legislative References:
ITAA 54;
ITAA 61
Case References:
FC of T v Anderson
(1956) 11 ATD 115
6 ATR 324
Date: | Version: | Change: | |
You are here | 20 August 1992 | Original ruling | |
4 October 2000 | Withdrawn |