Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 35 - Deferral of losses from non-commercial business activities  

Operative provisions  

SECTION 35-40   Real property test  

35-40(1)    

The rules in section 35-10 do not apply to a ^* business activity for an income year if the total ^* reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000.

35-40(2)    

You may use the *market value of the real property or interest if that value is more than its ^* reduced cost base.

35-40(3)    

The ^* reduced cost base or *market value is worked out:

(a) as at the end of the income year; or

(b) if you stopped carrying on the ^* business activity during the year:

(i) as at the time you stopped; or

(ii) if you disposed of the asset before that time in the course of stopping carrying on the activity - as at the time you disposed of it.

35-40(4)    
However, these assets are not counted for this test:

(a) a ^* dwelling, and any adjacent land used in association with the dwelling, that is used mainly for private purposes;

(b) fixtures owned by you as a tenant.