INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 45 - Disposal of leases and leased plant  

Operative provisions  

SECTION 45-30   Reduction for certain plant acquired before 21.9.99  

45-30(1)  
The amount included in your assessable income under subsection 45-5(2) or 45-10(2) is reduced if:


(a) you acquired the * plant at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and you disposed of the plant or an interest in it after that time; and


(b) the sum of the amounts (your proceeds ) referred to in paragraph 45-5(1)(e) or 45-10(1)(f) is more than the plant's * cost, or that part of it that is attributable to the interest you disposed of.

45-30(2)  
The amount included is reduced by the lesser of:


(a) the amount (if any) by which the * plant's * cost base exceeds its * cost, or that part of the excess that is attributable to the interest you disposed of; and


(b) the difference between your proceeds and the plant's cost, or that part of its cost that is attributable to the interest you disposed of.

45-30(3)  
However, the amount is not reduced under this section if:


(a) the * plant was a * pre-CGT asset at the time of the * balancing adjustment event; or


(b) a * capital gain or * capital loss from the plant or interest would be disregarded because of a provision listed in the table in this subsection if:


(i) you had made the gain or loss from * CGT event A1; and

(ii) that CGT event had happened at the time of the balancing adjustment event.


Plant for which a reduction is not made under this section
Item Provision Subject matter
1 section 118-5 cars, motor cycles and valour decorations
.
2 section 118-10 collectables and personal use assets
.
3 section 118-12 plant used to produce exempt income


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