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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-F - Primary production depreciating assets    View history reference

Operative provisions

SECTION 40-565  Extra deduction for destruction of a horticultural plant  

 View history reference ITAA 36

40-565(1)  

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You can deduct the amount worked out under subsection (2) for a *horticultural plant for an income year if its *effective life is 3 years or more and it is destroyed during the income year while you own it and use it for *commercial horticulture.

40-565(2)  

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Work out your deduction as follows:

Method statement

Step 1. 

Work out the total of the amounts you could have deducted under this Subdivision for the *horticultural plant for the period:

(a) starting when the plant could first be used for *commercial horticulture; and
(b) ending when it was destroyed;

assuming that, during that period, you satisfied a condition in section 40-525 for the plant and used it for commercial horticulture.


Step 2. 

Subtract from the capital expenditure that is attributable to the establishment of the *horticultural plant:

(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for the destruction.

The remaining amount (if any) is your deduction under subsection (1).

40-565(3)  

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This deduction is in addition to any deduction for the income year under section 40-545.


 



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