Income Tax Assessment Act 1997



Division 40 - Capital allowances  

Subdivision 40-D - Balancing adjustments  

Operative provisions

SECTION 40-293   Adjustments - partnership assets used for both general tax purposes and R & D activities  

This section applies to an *R & D partnership if:

(a) a *balancing adjustment event happens in an income year (the event 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

(b) one or more partners of the R & D partnership are entitled under section 355-100 to *tax offsets for one or more income years for deductions (the R & D deductions ) under section 355-520 for the asset.

Note 1:

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 ).

Note 2:

To the extent any amount that is included in the R & D partnership ' s assessable income under section 40-285 relates to R & D activities, a partner may have an additional amount included in the partner ' s assessable income (see section 355-449 ).

Note 3:

To the extent any amount that the R & D partnership is entitled to as a deduction under section 40-285 relates to R & D activities, a partner may have an additional amount the partner can deduct (see section 355-468 ).

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

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.

(Repealed by No 92 of 2020)


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