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  

The usual case

SECTION 20-115   Working out the profit on the disposal  

20-115(1)  
The profit on the disposal is the amount by which the * consideration receivable for the disposal exceeds:

  • · the amount it cost you to acquire the * car;
  • plus:

  • · any capital expenditure you incurred on the car after acquiring it.
  • 20-115(2)  


    The consideration receivable is worked out using this table:


    Consideration receivable for the disposal of the car
    Item In this situation: the consideration receivable is:
    1 you sell the *car for an amount specific to it the proceeds of the sale, less the expenses of the sale
    .
    2 you sell the *car with other property without a specific amount being allocated to it the part of the total proceeds of the sale that is reasonably attributable to the car less the part of the reasonably attributable expenses of the sale
    .
    3 you trade the *car in and buy another car the value of the trade-in, plus any other consideration you receive
    .
    4 you sell the *car and another entity buys another car the amount by which the cost of the other car is reduced by the sale, plus any other consideration you receive
    .
    5 you dispose of the *car to an insurer because it is lost or destroyed the amount or value received or receivable under the insurance policy

    20-115(3)  


    However, if the disposal of the * car is a * taxable supply, the consideration receivable does not include an amount equal to the * GST payable on the supply.

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.