Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 35.40

Real property test

  (1)   The rules in section   35 - 10 do not apply to a * business activity for an income year if the total * reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000.

  (2)   You may use the * market value of the real property or interest if that value is more than its * reduced cost base.

  (3)   The * reduced cost base or * market value is worked out:

  (a)   as at the end of the income year; or

  (b)   if you stopped carrying on the * business activity during the year:

  (i)   as at the time you stopped; or

  (ii)   if you disposed of the asset before that time in the course of stopping carrying on the activity--as at the time you disposed of it.

  (4)   However, these assets are not counted for this test:

  (a)   a * dwelling, and any adjacent land used in association with the dwelling, that is used mainly for private purposes;

  (b)   fixtures owned by you as a tenant.


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