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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 35 - Deferral of losses from non-commercial business activities    View history reference

Operative provisions  

SECTION 35-40  Real property test  

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35-40(1)  

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The rules in section 35-10 do not apply to a *business activity for an income year if the total *reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000.

35-40(2)  

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You may use the *market value of the real property or interest if that value is more than its *reduced cost base.

35-40(3)  

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The *reduced cost base or *market value is worked out:


(a) as at the end of the income year; or


(b) if you stopped carrying on the *business activity during the year:


(i) as at the time you stopped; or

(ii) if you disposed of the asset before that time in the course of stopping carrying on the activity - as at the time you disposed of it.

35-40(4)  

However, these assets are not counted for this test:


(a) a *dwelling, and any adjacent land used in association with the dwelling, that is used mainly for private purposes;


(b) fixtures owned by you as a tenant.


 



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