Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME  

Division 20 - Amounts included to reverse the effect of past deductions  

Subdivision 20-B - Disposal of a car for which lease payments have been deducted  

Disposals of interests in a car: special rules apply

SECTION 20-160   Disposal of an interest in a car  

20-160(1)    
This Subdivision applies to the disposal of an interest in a ^* car in almost the same way as it does to the disposal of the car itself. The differences are set out below.

20-160(2)    
Your assessable income includes so much of your ^* profit on the disposal as is reasonable. The limits in subsections 20-110(2) and 20-125(2) do not apply.

20-160(3)    
The cost of the interest to you is taken to be a reasonable amount.

20-160(4)    
Sections 20-135 and 20-140 do not apply to the disposal.

Note 1:

Section 20-135 says that you do not include an amount if there has been an earlier disposal of the car for market value.

Note 2:

Section 20-140 allows you to reduce the amount to be included if there has been an earlier disposal of the car.

20-160(5)    
Section 20-145 applies to the disposal if you inherited either the interest or the ^* car itself.

Note:

Section 20-145 says that you do not include an amount if you inherited the car.