Taxation Determination
TD 92/177
Income tax: if the construction cost of an eligible building is greater than the sale proceeds of that building, what is the amount of the qualifying expenditure under section 124ZG of the Income Tax Assessment Act 1936 ?
This version is no longer current. Please follow this link to view the current version. |
-
Please note that the PDF version is the authorised version of this ruling.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
FOI status:
may be releasedFOI number: I 1213525| This 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, this Determination applies to years commencing both before and after its date of issue. |
1. The amount of qualifying expenditure under section 124ZG is the construction cost of the eligible building.
2. Taxation Ruling IT 2640 outlines the type of expenses that may be included as part of the construction cost of an eligible building.
Example:
A builder constructs seven factory units, to be used for income producing purposes, at a cost of $100,000 each. The builder sells six of the factory units for $150,000 each, but is unable to sell the last factory unit due to a downturn in the property market. He therefore decides to sell the last factory unit for $80,000. If the purchaser uses the factory solely for the purpose of producing income, the amount of qualifying expenditure is $100,000 [Division 10D, paragraph 124ZG(1)(e), or paragraph 124ZG(2A)(e)].
Note: for the purposes of this example there is no cost attached to the land.
Commissioner of Taxation
29 October 1992
Previously issued as Draft TD 92/D164
References
ATO references:
NO PNR T95 Pt2
Related Rulings/Determinations:
IT 2640
Subject References:
construction cost
eligible building
qualifying expenditure
Legislative References:
ITAA 124ZG(1)(e)
ITAA 124ZG(2A)(e)
| Date: | Version: | Change: | |
| You are here | 29 October 1992 | Original ruling | |
| 17 December 1997 | Withdrawn |