INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-D - Capital allowances for small business entities  

Special rules about roll-overs

SECTION 328-253   Deductions for cost addition amounts  

328-253(1)  
This section applies in working out the amount that the transferor or transferee can deduct for the BAE year under subsection 328-180(2) or 328-190(3) for expenditure incurred by the transferor or transferee during the BAE year that is included in the second element of the *cost of a depreciating asset. Expenditure incurred by transferor

328-253(2)  
If the expenditure was incurred by the transferor, the amount that can be deducted under subsection 328-180(2) or 328-190(3) for the BAE year is split equally between:


(a) the transferor and the transferee; or


(b) if there are 2 or more occurrences of *balancing adjustment events for relevant entities for the BAE year and a roll-over is chosen for each occurrence - the entities concerned.

Expenditure incurred by transferee

328-253(3)  
If the expenditure was incurred by the transferee:


(a) the transferor cannot deduct anything for the expenditure for the BAE year; and


(b) the amount that can be deducted under subsection 328-180(2) or 328-190(3) for the expenditure for the BAE year is:


(i) deductible by the transferee; or

(ii) if there are 2 or more occurrences of * balancing adjustment events for relevant entities for the BAE year and a roll-over is chosen for each occurrence - split equally between the entities concerned.
Special rule for expenditure on assets costing less than $1,000

328-253(4)  
Subsection (5) applies if:


(a) the transferor incurred the expenditure in relation to an asset of a kind mentioned in paragraph 328-180(1)(b) ; and


(b) a *balancing adjustment event occurs for that asset before the BAE day.

Note:

The threshold in subsection 328-180(1) is $20,000 (instead of $1,000) for assets first acquired between 12 May 2015 and 30 June 2019: see subsection 328-180(4) of the Income Tax (Transitional Provisions) Act 1997 .

328-253(5)  
The transferee cannot deduct anything for the expenditure for the BAE year, and subsection 328-215(4) does not apply to the transferee in relation to the asset.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.