INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 250 - Assets put to tax preferred use  

Subdivision 250-D - Deemed loan treatment of financial benefits provided for tax preferred use  

SECTION 250-180   End value of asset  

250-180(1)  
The end value of an asset is worked out in accordance with this section.

250-180(2)  
If the asset has a *guaranteed residual value, the end value of the asset is:


(a) the amount of the guaranteed residual amount if subparagraph 250-15(d)(i) applies; or


(b) so much of the amount referred to in paragraph (a) as is attributable to the expenditure referred to in subparagraph 250-15(d)(ii) if that subparagraph applies.

250-180(3)  
If the asset does not have a *guaranteed residual value and is a *depreciating asset, the end value of the asset is:


(a) if subparagraph 250-15(d)(i) applies - the amount that would have been the *adjustable value of the asset at the end of the *arrangement period if:


(i) this Division had not applied to you and the asset; and

(ii) the decline in the asset ' s value were worked out on the basis of the asset ' s *effective life and using the *prime cost method; or


(b) if subparagraph 250-15(d)(ii) applies - so much of the amount referred to in paragraph (a) as is attributable to the expenditure referred to in that subparagraph.

250-180(4)  
Disregard section 40-102 in working out the asset ' s *effective life for the purposes of subparagraph (3)(a)(ii).

250-180(5)  
If neither subsection (2) nor subsection (3) applies and an estimate of the value of the asset is recognised for accounting purposes, the end value of the asset is:


(a) the value of the relevant asset at the end of the *arrangement period that would be recognised for accounting purposes if subparagraph 250-15(d)(i) applies; or


(b) so much of the value of referred to in paragraph (a) as is attributable to the expenditure referred to subparagraph 250-15(d)(ii) if that subparagraph applies.

The end value must not, however, exceed the amount worked out under subsections 250-155(4) and (5) (amount taken to have been lent).

250-180(6)  
If none of subsections (2), (3) and (5) apply to the asset, the end value of the asset is:


(a) a reasonable estimate of the *market value of the asset at the end of the *arrangement period if subparagraph 250-15(d)(i) applies; or


(b) so much of the estimate referred to in paragraph (a) as is attributable to the expenditure referred to in subparagraph 250-15(d)(ii) if that subparagraph applies.

The end value must not, however, exceed the amount worked out under subsections 250-155(4) and (5) (amount taken to have been lent).


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