INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
This section applies where deductions have been allowed or are allowable under section 124JA in respect of expenditure of a capital nature on a building and, in the year of income, the building has been disposed of or destroyed, or the use by the taxpayer of the building for the purpose for which it was primarily and principally constructed or purchased has been otherwise terminated.
View history note
Hide history note(a) the consideration receivable in respect of the disposal or destruction of the building; or
(b) in the case of other termination of the use of the building, the value of the building at the date of the termination of use,
exceeds the residual capital expenditure in respect of the building immediately before the time of the disposal, destruction or termination of use, so much of the amount of the excess as does not exceed the sum of the deductions allowed or allowable under section l24JA in respect of expenditure in respect of the building shall be included in the assessable income.
Where the residual capital expenditure in respect of the building immediately before the time of the disposal, destruction or termination of use exceeds:
(a) the consideration receivable in respect of the disposal or destruction of the building; or
(b) in the case of other termination of the use of the building, the value of the building at the date of the termination of use,
the amount of the excess shall be an allowable deduction.
124JB(4) [``consideration receivable'']In this section, the consideration receivable in respect of the disposal or destruction means:
(a) in the case of a sale of the building - the sale price less the expenses of the sale of the building;
(b) in the case of destruction of the building - the amount or value received or receivable under a policy of insurance or otherwise in respect of the destruction;
(c) in the case where the building is sold with other property and no separate value is allocated to the building - the amount determined by the Commissioner; and
(d) in the case where the building is disposed of otherwise than by sale - the value, if any, of the building at the date of disposal,
but does not include an amount that is included, or will, when received, be included, in the assessable income of any year of income under section 26AB or Division 4 .
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.
