INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 3 - Leasing company deduction  

Subdivision A - Entitlement to deduction  

SECTION 640   LIMIT ON TOTAL DEDUCTIONS  

640(1A)   [No operation 1997/98 year onwards]  

This section does not apply to the 1997-98 year of income or a later year of income.

640(1)   Deductions not to exceed net amount.  

If the taxpayer would be entitled to one or more deductions under section 636 for a year of income, the deduction, or the total of the deductions, allowable to the taxpayer (after applying section 639 ) for the year of income is limited to the net amount in subsection (2).

640(2)   Meaning of net amount.  

The net amount is:

(a) the assessable income of the taxpayer for the year of income;

reduced by:

(b) all deductions allowable from the assessable income, other than those allowable:

(i) under this Part; or

(ii) under Subdivision B (development allowance) or BA (general investment allowance) of Division 3 of Part III in relation to units of property leased by the taxpayer to other persons; or

(iii) under section 79E , 79F , 80 , 80AAA or 80AA (which relate to previous years' losses).