Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 355 - Research and Development  

Subdivision 355-H - Catch up deductions for balancing adjustment events for assets used for R & D activities  

Operative provisions

SECTION 355-466   Assets partially used for R & D activities  

355-466(1)  
The *R & D entity has an amount under this section if:

(a)  a *balancing adjustment event happens in the present year for an asset *held by the R & D entity for which:


(i) the R & D entity can deduct, for an income year, an amount under section 40-25 , as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or

(ii) the R & D entity could have deducted, for an income year, an amount as described in subparagraph (i) if the R & D entity had used the asset; and

(b)  the R & D entity is entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-305 for the asset; and

(c)  the R & D entity can deduct an amount (the section 40-285 amount ) for the asset under section 40-285 (after applying subsection 40-292(2) ) for the present year.

Note:

This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-292 of the Income Tax (Transitional Provisions) Act 1997) .

355-466(2)  
The amount is worked out as follows:


Total R & D deductions
Total decline in value
×   Section 40-285 amount

where:

total decline in value
means the *cost of the asset less its *adjustable value.


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