Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-D - Balancing adjustments  

Operative provisions

SECTION 40-292   Adjustments - assets used for both general tax purposes and R & D activities  

40-292(1)  
This section applies if:


(a) a *balancing adjustment event happens in an income year (the event year ) for an asset you *held and for which:


(i) you 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) you could have deducted, for an income year, an amount as described in subparagraph (i) if you had used the asset; and


(b) you are entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-305 for the asset.

Note 1:

This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40-292 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:

To the extent that any amount is included in your assessable income under section 40-285 in relation to R & D activities, you may have an additional amount included in your assessable income (see section 355-447 ).

Note 3:

To the extent any amount that you are entitled to as a deduction under section 40-285 relates to R & D activities, you may have an additional amount you can deduct (see section 355-466 ).

Section 40-290 to be applied as if use for conducting R & D activities were use for a taxable purpose

40-292(2)  
In applying section 40-290 (including references in that section to the reduction of deductions under section 40-25 ) in relation to the asset, assume that using the asset for a *taxable purpose includes using it for the purpose of conducting the *R & D activities to which the R & D deductions relate.

40-292(3)  
(Repealed by No 92 of 2020)

40-292(4)  
(Repealed by No 92 of 2020)

40-292(5)  
(Repealed by No 92 of 2020)


 

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