A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

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 35-45  Other assets test  

 View history reference

35-45(1)  

 View history reference
The rules in section 35-10 do not apply to a * business activity for an income year if the total values of assets that are counted for this test (see subsections (2) and (4)) and that are used on a continuing basis in carrying on the activity in that year is at least $100,000.

35-45(2)  

 View history reference
The assets counted for this test, and their values for this test, are set out in this table:
Assets counted for this test and their values
ItemAssetValue
1An asset whose decline in value you can deduct under Division 40The asset ' s *written down value
.......... .
2An item of *trading stockIts value under subsection 70-45(1)
.......... .
3An asset that you lease from another entityThe sum of the amounts of the future lease payments for the asset to which you are irrevocably committed, less an appropriate amount to reflect any interest component for those lease payments
.......... .
4Trade marks, patents, copyrights and similar rightsTheir *reduced cost base

35-45(3)  

The value of such an asset 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.

35-45(4)  

However, these assets are not counted for this test:


(a) assets that are real property or interests in real property that are taken into account for that year under section 35-40 ;


(b) * cars, motor cycles and similar vehicles.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page