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-H - Catch up deductions for balancing adjustment events for assets used for R & D activities  

Operative provisions

SECTION 355-468   R & D partnership assets partially used for R & D activities  

355-468(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)  the R & D partnership can deduct an amount (the section 40-285 amount ) for the asset under section 40-285 (after applying subsection 40-293(2) ) for the present year.

Note:

This section applies in a modified way if the partners have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-293 of the Income Tax (Transitional Provisions) Act 1997) .

355-468(2)  
The amount is the partner ' s proportion of the amount worked out as follows:


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

where:

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.


 

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.