Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-F - Primary production depreciating assets  

Operative provisions

SECTION 40-565   Extra deduction for destruction of a horticultural plant  

40-565(1)    


You can deduct the amount worked out under subsection (2) for a * horticultural plant for an income year if its * effective life is 3 years or more and it is destroyed during the income year while you own it and use it for * commercial horticulture.

40-565(2)    


Work out your deduction as follows: Method statement

Step 1.

Work out the total of the amounts you could have deducted under this Subdivision for the * horticultural plant for the period:

  • (a) starting when the plant could first be used for * commercial horticulture; and
  • (b) ending when it was destroyed;
  • assuming that, during that period, you satisfied a condition in section 40-525 for the plant and used it for commercial horticulture.


    Step 2.

    Subtract from the capital expenditure that is attributable to the establishment of the * horticultural plant:

  • (a) the result from step 1; and
  • (b) any amount you received (under an insurance policy or otherwise) for the destruction.
  • The remaining amount (if any) is your deduction under subsection (1).


    40-565(3)    


    This deduction is in addition to any deduction for the income year under section 40-545 .

     

    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.