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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 40-230  Adjustment: car limit  

 View history reference ITAA 36

40-230(1)  

 View history reference
The first element of the cost of a *car designed mainly for carrying passengers (after applying section 40-225 and Subdivision 27-B) is reduced to the *car limit for the *financial year in which you started to *hold it if its cost exceeds that limit.

40-230(2)  

However, the *car limit does not apply to a *car:


(a) fitted out for transporting disabled people in wheelchairs for profit; or


(b) whose first element of *cost exceeds that limit only because of modifications made to enable an individual with a disability to use it for a *taxable purpose.

40-230(3)  

The car limit for the 2000-01 *financial year is $55,134. The limit is indexed annually.

Note:

Subdivision 960-M shows you how to index amounts.

40-230(4)  

 View history reference
If you *hold a *car that is also held by one or more other entities, subsection (1) applies to the *cost of the car despite section 40-35. Then section 40-35 applies to the cost of the car as reduced under subsection (1).


 



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