INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

Division 57 - Tax exempt entities that become taxable  

Subdivision 57-J - Capital allowances and certain other deductions  

SECTION 57-95   AMOUNT OF DEDUCTION NOT ALLOWABLE FOR TRANSITION YEAR  

57-95(1)  
If, apart from this section, an amount would be an allowable deduction under a modified deduction rule for the transition year in respect of expenditure incurred before the transition time (whether or not during the transition year), only so much of the amount as is worked out using the following formula is so allowable:


Number of whole days in transition year after transition time
× Amount of deduction
Post-expenditure part

where:

post-expenditure part means:


(a) if the expenditure was incurred before the transition year - the number of days in the transition year; or


(b) otherwise - the number of days in the period from the beginning of the day on which the expenditure is incurred until the end of the transition year.

57-95(2)  
This section does not apply to an amount to which paragraph 57-110(1)(b) (which deals with balancing adjustments) applies.


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