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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances    View history reference

Subdivision 40-C - Cost    View history reference

Operative provisions

SECTION 40-225  Adjustment: acquiring a car at a discount  

 View history reference ITAA 36

40-225(1)  

You must increase the first element of the cost of a *car designed mainly for carrying passengers you acquire at a discount if:


(a) it is reasonable to conclude that any portion (the discount portion) of the discount is referable to you or another entity selling another asset for less than its *market value; and


(b) you, or another entity, has deducted or can deduct an amount for the other asset for any income year; and


(c) the sum of the cost of the car and the discount portion exceeds the *car limit for the *financial year in which you first use the car for any purpose.

40-225(2)  

The first element of the cost of the *car is increased by the discount portion.

40-225(3)  

This section does not apply to a *car that is excluded from the *car limit by subsection 40-230(2).


 



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