INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 6 - Special provisions about leasing companies  

Subdivision A - Partnerships  

SECTION 661  

661   PARTNER DEDUCTION FOR PROPERTY LEASED OUT BY PARTNERSHIP  
If:

(a) a partnership incurs expenditure in acquiring or constructing an item of drought mitigation property that it leases to any person (the lessee ); and

(b) any of the partners is a leasing company;

section 636 applies to any such partner as if the partner had incurred:

(c) if the partners have agreed that a proportion of the expenditure is to be borne by the partner - that proportion of the expenditure; or

(d) if not - a proportion of the deduction equal to the partner's partnership interest (see section 677 ) in the expenditure.