Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-42 - PERSONAL SERVICES INCOME  

Division 86 - Alienation of personal services income  

Subdivision 86-B - Entitlement to deductions  

SECTION 86-85  

86-85   Deduction entitlements of personal services entities for amounts included in an individual's assessable income  

The fact that a *personal services entity:

(a) incurs an amount in gaining or producing an individual's assessable income; or

(b) uses a *depreciating asset, or has it installed ready for use, for the *purpose of producing assessable income of an individual;

does not stop the entity deducting the loss or outgoing, or deducting an amount for the decline in value of the asset, under this Act if:

(c) the entity incurs the amount in gaining or producing, or uses or installs the depreciating asset for the purpose of producing, its *ordinary income or *statutory income; and

(d) the income is included in the individual's assessable income under section 86-15 .