Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 242-15 Notional sale and acquisition 242-15(1)
This Act has effect as if:
(a) the *car had been disposed of (the notional sale ) by the lessor to the lessee; and
(b) the car had been acquired by the lessee;
at the start of the term of the lease.
Note:
This Act will apply as it would have if the lessor had actually disposed of the car to the lessee. For example, if the lessor had been deducting an amount for the car ' s decline in value, the notional disposal will activate the balancing adjustment rules in Subdivision 40-D because the lessor would be treated as no longer holding the car.
242-15(2)
This Act also has effect as if the lessee owns the *car until:
(a) the lease (not including any extension or renewal of the lease) ends; or
(b) the lessee enters into a sublease of the car and this Division applies to the car in relation to the sublease.
Note 1:
This means that the lessee (and not the lessor) may be able to deduct amounts for the decline in value of the car under Division 40 .
Note 2:
The lessee will be treated as continuing to own the car until the end of any extension or renewal: see section 242-80 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
