INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
This section applies where deductions have been allowed or are allowable under section 124F in respect of expenditure of a capital nature on an access road and, in the year of income, property on which any of that expenditure was incurred has been disposed of or destroyed, or the use by the taxpayer of that property for the purpose for which the access road was primarily and principally constructed has been otherwise terminated.
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Hide history note(a) the consideration receivable in respect of the disposal or destruction of the property; or
(b) in the case of other termination of the use of the property, the value of the property at the date of the termination of use,
exceeds the portion of the residual capital expenditure which, at the time of the disposal, destruction or termination of use, is attributable to expenditure on the property, so much of the amount of the excess as does not exceed the sum of the deductions allowed or allowable under section 124F in respect of expenditure on the property so disposed of or destroyed, or the use of which has been so terminated, shall be included in the assessable income.
Where the portion of the residual capital expenditure which, at the time of the disposal, destruction or termination of use of the property, is attributable to expenditure on the property exceeds:
(a) the consideration receivable in respect of the disposal or destruction of the property; or
(b) in the case of other termination of the use of the property, the value of the property at the date of the termination of use,
the amount of the excess shall be an allowable deduction.
124G(4) [``consideration receivable'']In this section, the consideration receivable in respect of the disposal or destruction means:
(a) in the case of a sale of the property - the sale price less the expenses of the sale of the property;
(b) in the case of destruction of the property - the amount or value received or receivable under a policy of insurance or otherwise in respect of the destruction;
(c) in the case where the property is sold with other property and no separate value is allocated to the property - the amount determined by the Commissioner; and
(d) in the case where the property is disposed of otherwise than by sale - the value, if any, of the property at the date of disposal,
but does not include an amount which is included, or will, when received, be included, in the assessable income of any year of income under section 26AB or Division 4 .
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