Income Tax (Transitional Provisions) Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

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

Division 40 - Capital allowances  

Subdivision 40-J - Ships depreciated under section 57AM of the Income Tax Assessment Act 1936  

SECTION 40-840   Ships depreciated under section 57AM of the Income Tax Assessment Act 1936  

40-840(1)    
This section applies if:

(a) you have deducted or can deduct amounts for a ship under section 57AM of the Income Tax Assessment Act 1936 as in force before its repeal by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 ; and

(b) you hold the ship when this section commences.

40-840(2)    
Division 40 of the Income Tax Assessment Act 1997 applies to the ship after the commencement of this section.

40-840(3)    
For the purposes of that application:

(a) the cost of the ship when this section commences is its cost under the Income Tax Assessment Act 1936 just before that time; and

(b) the ship ' s adjustable value when this section commences is its depreciated value under the Income Tax Assessment Act 1936 just before that time; and

(c) paragraphs 40-285(1)(a) and (2)(a) have effect as if amounts you have deducted or can deduct under section 57AM of the Income Tax Assessment Act 1936 , as in force before its repeal, are taken to be part of the ship ' s decline in value under Subdivision 40-B of the Income Tax Assessment Act 1997 .