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Edited version of your private ruling
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Ruling
Subject: Division 40 of the ITAA 1997
The taxpayer that is the subject of the ruling will undertake works on a depreciating asset. The works are carried out over a period of time.
Question 1(a)
The ruling concerned whether the works carried out will create a new depreciating asset for the purposes of section 40-30 of the ITAA 1997.
Answer 1(a)
The Commissioner ruled that the works carried out will create a new depreciating asset for the purposes of section 40-30 of the ITAA 1997.
Question 1(b)
The ruling concerned whether the costs of the works constitute a first element of cost for the purposes of section 40-180 of the ITAA 1997.
Answer 1(b)
The Commissioner ruled that the costs of the works constitute a first element of cost for the purposes of section 40-180 of the ITAA 1997.
Question 2(a)
The ruling concerned whether the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997?
Answer 2(a)
No.
Question 2(b)
The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the costs of the works a second element of cost for the purposes of section 40-190 of the ITAA 1997?
Answer 2(b)
Not necessary for the Commissioner to rule.
Question 2(c)
The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the taxpayer is required to recalculate the effective life of the depreciating asset for the purposes of subsection 40-110(3) of the ITAA 1997?
Answer 2(c)
Not necessary for the Commissioner to rule.
Question 2(d)
The ruling concerned, if the works on the site are an extension to an existing depreciating asset for the purposes of section 40-30 of the ITAA 1997, if the prime cost method under section 40-75 of the ITAA 1997 be used?
Answer 2(d)
Not necessary for the Commissioner to rule.
This ruling applies for the following periods:
1 January 2010 - 31 December 2010
1 January 2011 - 31 December 2011
1 January 2012 - 31 December 2012
1 January 2013 - 31 December 2013
The scheme commences on:
1 January 2010