Income Tax Assessment Act 1997



Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-120   Transitional - deduction for payment of rent from land investment by operating entity to asset entity  

This section applies if the requirements in subsection 12-440(1) or (2) in Schedule 1 to the Taxation Administration Act 1953 are satisfied in relation to a *cross staple arrangement.

An entity that is an *operating entity in relation to the *cross staple arrangement can deduct, for an income year, an amount of *rent from land investment if:

(a) another entity derives or receives the amount from the operating entity at a time that:

(i) is in the income year; and

(ii) is on or after 27 March 2018; and

(iii) meets the requirements in subsection 12-440(4) of Schedule 1 to the Taxation Administration Act 1953 ; and

(b) the other entity is an *asset entity in relation to the cross staple arrangement; and

(c) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and

(d) the amount is *excepted MIT CSA income of the asset entity for the income year.

If the *asset entity is not a *managed investment trust in relation to the income year, for the purposes of paragraph (2)(d), treat it as a managed investment trust in relation to the income year.


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