Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-10
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FINANCIAL TRANSACTIONS
Division 243
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Limited recourse debt
Subdivision 243-C
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Amounts included in assessable income and deductions
Operative provisions
SECTION 243-55 Effect of Division on later capital allowance deductions 243-55(1)
This section applies where this Division (other than section 243-65 ) has applied in relation to a debt and the debtor is entitled to a *capital allowance deduction in respect of the expenditure or the *financed property in relation to a time or period after the termination of the debt.
243-55(2)
The *capital allowance deduction is reduced if the amount that would have been worked out under subsection 243-35(2) would have exceeded the amount worked out under subsection 243-35(4) if the following assumptions were applied in both subsections: Assumptions to be applied
(1)
(2)
(3)
243-55(3)
The deduction is to be reduced by the amount of the excess.
View history note
Hide history noteSECTION 243-55 Effect of Division on later capital allowance deductions 243-55(1)
This section applies where this Division (other than section 243-65 ) has applied in relation to a debt and the debtor is entitled to a *capital allowance deduction in respect of the expenditure or the *financed property in relation to a time or period after the termination of the debt.
243-55(2)
The *capital allowance deduction is reduced if the amount that would have been worked out under subsection 243-35(2) would have exceeded the amount worked out under subsection 243-35(4) if the following assumptions were applied in both subsections: Assumptions to be applied
(1)
That the debt was terminated at the time, or at the end of the period, referred to in subsection (1) of this section.
(2)
That the amount unpaid at the time, or at the end of the period, is reduced by any amounts paid under a replacement debt.
(3)
The debtor's *capital allowance deductions in respect of the expenditure or the *financed property were increased by the amount of the capital allowance deduction referred to in subsection (1) of this section.
243-55(3)
The deduction is to be reduced by the amount of the excess.
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