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 124JC   ACQUISITION OF BUILDING  

124JC(1)   [Expenditure not included]  

Where a person has purchased a building from another person carrying on a business of milling timber for the purpose of gaining or producing assessable income, so much (if any) of the purchase price as exceeds the sum of:

(a) the amount that, if the building had not been sold, would have been, at the end of the year of income in which the sale took place, the residual capital expenditure of the vendor in respect of the building; and

(b) any part of the purchase price that is included in the assessable income of the vendor in pursuance of section 124JB ,

shall not, for the purposes of this Subdivision, be included in the expenditure of the purchaser in respect of the building.

124JC(2)   [Depreciation]  

Where a person has purchased from another person a building in respect of which depreciation has been allowed or is allowable under this Act, so much (if any) of the purchase price as exceeds the sum of:

(a) the depreciated value of the building immediately before the time of the purchase; and

(b) any part of the purchase price that is included in the assessable income of the vendor in pursuance of section 59 ,

shall not, for the purposes of this Subdivision, be included in the expenditure of the purchaser in respect of the building.

124JC(3)   [Limit on application]  

This section does not apply where the Commissioner is of opinion that the circumstances are such that it should not apply.