INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME  

Division 20 - Amounts included to reverse the effect of past deductions  

Subdivision 20-B - Disposal of a car for which lease payments have been deducted  

Disposals of interests in a car: special rules apply

SECTION 20-160   Disposal of an interest in a car  

20-160(1)  
This Subdivision applies to the disposal of an interest in a * car in almost the same way as it does to the disposal of the car itself. The differences are set out below.

20-160(2)  
Your assessable income includes so much of your * profit on the disposal as is reasonable. The limits in subsections 20-110(2) and 20-125(2) do not apply.

20-160(3)  
The cost of the interest to you is taken to be a reasonable amount.

20-160(4)  
Sections 20-135 and 20-140 do not apply to the disposal.

Note 1:

Section 20-135 says that you do not include an amount if there has been an earlier disposal of the car for market value.

Note 2:

Section 20-140 allows you to reduce the amount to be included if there has been an earlier disposal of the car.

20-160(5)  
Section 20-145 applies to the disposal if you inherited either the interest or the * car itself.

Note:

Section 20-145 says that you do not include an amount if you inherited the car.


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