Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) a * balancing adjustment event happens in an income year (the event year ) for an asset you * held and for which:
(i) you can deduct, for an income year, an amount under section 40 - 25, as that section applies apart from Division 355 and former section 73BC of the Income Tax Assessment Act 1936 ; or
(ii) you could have deducted, for an income year, an amount as described in subparagraph (i) if you had used the asset; and
(b) you are entitled under section 355 - 100 to * tax offsets for one or more income years for deductions (the R&D deductions ) under section 355 - 305 for the asset.
Note 1: This section applies in a modified way if you have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40 - 292 of the Income Tax (Transitional Provisions) Act 1997 ).
Note 2: To the extent that any amount is included in your assessable income under section 40 - 285 in relation to R&D activities, you may have an additional amount included in your assessable income (see section 355 - 447).
Note 3: To the extent any amount that you are entitled to as a deduction under section 40 - 285 relates to R&D activities, you may have an additional amount you can deduct (see section 355 - 466).
Section 40 - 290 to be applied as if use for conducting R&D activities were use for a taxable purpose
(2) In applying section 40 - 290 (including references in that section to the reduction of deductions under section 40 - 25) in relation to the asset, assume that using the asset for a * taxable purpose includes using it for the purpose of conducting the * R&D activities to which the R&D deductions relate.