INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 54AD   LESSOR NOT AN ELIGIBLE LESSOR IF PROPERTY PREVIOUSLY OWNED BY THE LESSEE  

54AD(1)   [Any previous ownership]  

Subject to subsection (2), a lessor is not an eligible lessor in relation to a unit of property for the purposes of subsection 54AB(1) if, at any time before the lease was entered into, the lessee or an associate of the lessee owned the property and used it or held it for use.

54AD(2)   [Immediately preceding 6 months]  

Subsection (1) does not apply if:

(a) the property was first owned and used or held for use by the lessee or an associate of the lessee no more than 6 months before the lessor acquired the property; and

(b) the lessor acquired the property from the lessee or an associate of the lessee; and

(c) the property was not a fixture at the time that it was first owned and used or held for use by the lessee or an associate of the lessee; and

(d) at the time the property was first owned and used or held for use by the lessee or an associate of the lessee, there was an arrangement in existence providing for the property to be sold to the lessor or another person and then leased to the lessee.

54AD(3)   [Fixtures]  

For the purposes of subsections (1) and (2), a person (the seller ) is taken to have sold property and another person (the purchaser ) is taken to have acquired property where the seller purports to sell the property to the purchaser but does not because the property is a fixture on land.

54AD(4)   [Depreciated value calculation]  

If the conditions in subsection (2) are satisfied, the cost of the property to the lessor, for the purposes of working out the property's depreciated value under section 62 , is taken to be the lesser of:

(a) the sum of:

(i) the amount that would have been the depreciated value of the property of the lessee or an associate of the lessee at the time the lessor acquired it; and

(ii) any amount included in the assessable income of the lessee or associate under section 59 as a result of the sale; or

(b) the consideration paid by the lessor for the property.

54AD(5)   [Definition]  

For the purposes of this section:

associate
has the same meaning as in section 318 .