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-G - Clawback of R & D recoupments, feedstock adjustments and balancing adjustments  

Operative provisions

SECTION 355-449   Balancing adjustments for R & D partnership assets partially used for R & D activities  

355-449(1)  
The *R & D entity (the partner ) has an amount under this section if:

(a)  the partner is a partner in an *R & D partnership; and

(b)  a *balancing adjustment event happens in the present year for a *depreciating asset *held by the R & D partnership and for which:


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

(c)  one or more partners (including the partner) in the R & D partnership are entitled under section 355-100 to *tax offsets for one or more income years for deductions under section 355-520 for the asset; and

(d)  an amount (the section 40-285 amount ) is included in the R & D partnership ' s assessable income for the asset under section 40-285 (after applying subsection 40-293(2) ) for the present year.

355-449(2)  
The amount is the partner ' s proportion of the amount worked out as follows:


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

where:

adjusted section 40-285 amount
means so much of an amount equal to the section 40-285 amount as does not exceed the total decline in value.

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

total R & D deductions
means the sum of each partner ' s deductions mentioned in paragraph (1)(c) of this section.


 

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