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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-I - Capital expenditure that is deductible over time    View history reference

Operative provisions

SECTION 40-832  Project pools for post-9 May 2006 projects  

 View history reference

40-832(1)  

You calculate your deduction for an income year for a project pool in this way if the project pool contains only *project amounts incurred on or after 10 May 2006 for projects that start to operate on or after that day:
 Pool value × 200% 
DV project pool life

where:

DV project pool life has the same meaning as in subsection 40-830(3).

pool value has the same meaning as in subsection 40-830(3).

40-832(2)  

If, in an income year, you abandon, sell or otherwise dispose of a project for which you have a project pool, you can deduct for that year the sum of the pool's *closing pool value for the previous income year and any *project amounts allocated to the pool for the income year.

40-832(3)  

Your assessable income for that income year includes any amount you receive for the abandonment, sale or other disposal.

40-832(4)  

Your assessable income for an income year includes other capital amounts that you *derive in that year in relation to a *project amount allocated to your project pool or in relation to something on which the project amount is expended.

40-832(5)  

Your deduction for an income year cannot be more than the amount of the component "pool value" in the formula in subsection (1) for that year.


 



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