Income Tax Assessment Act 1997
The rules in section 35-10 do not apply to a * business activity for an income year if the total * reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000.
You may use the *market value of the real property or interest if that value is more than its * reduced cost base. 35-40(3)
The * reduced cost base or *market value is worked out:
(a) as at the end of the income year; or
(b) if you stopped carrying on the * business activity during the year:
(i) as at the time you stopped; or
(ii) if you disposed of the asset before that time in the course of stopping carrying on the activity - as at the time you disposed of it.
However, these assets are not counted for this test:
(a) a * dwelling, and any adjacent land used in association with the dwelling, that is used mainly for private purposes;
(b) fixtures owned by you as a tenant.
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