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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME    View history reference

Division 20 - Amounts included to reverse the effect of past deductions    View history reference

Subdivision 20-B - Disposal of a car for which lease payments have been deducted    View history reference

Disposals of interests in a car: special rules apply

SECTION 20-160  Disposal of an interest in a car  

 View history reference ITAA 36

20-160(1)  

This Subdivision applies to the disposal of an interest in a *car in almost the same way as it does to the disposal of the car itself. The differences are set out below.

20-160(2)  

Your assessable income includes so much of your *profit on the disposal as is reasonable. The limits in subsections 20-110(2) and 20-125(2) do not apply.

20-160(3)  

The cost of the interest to you is taken to be a reasonable amount.

20-160(4)  

Sections 20-135 and 20-140 do not apply to the disposal.

Note 1:

Section 20-135 says that you do not include an amount if there has been an earlier disposal of the car for market value.

Note 2:

Section 20-140 allows you to reduce the amount to be included if there has been an earlier disposal of the car.

20-160(5)  

Section 20-145 applies to the disposal if you inherited either the interest or the *car itself.

Note:

Section 20-145 says that you do not include an amount if you inherited the car.


 



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