Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purpose of determining the attributable income of a trust estate of a year of income (in this section called the attributable year of income ), where property has been held by the trustee of the trust estate in a non - attributable year of income before the attributable year of income, then, in relation to the application of a depreciation provision to the property, subsection (2) applies.
(2) Such amount as the Commissioner considers appropriate to take account of the holding of the property as mentioned in subsection (1) is, under the depreciation provision:
(a) an allowable deduction to the trustee of the trust estate; or
(b) included in the assessable income of the trust estate;
as the case requires, for the attributable year of income in substitution for any amount that would otherwise be so included or allowable.
(4) For the purpose of exercising the Commissioner's power under subsection (2) in relation to deductions allowable under Division 40 of the Income Tax Assessment Act 1997 , the Commissioner must assume that the property was used by the trustee of the trust estate during any non - attributable year of income wholly and exclusively for a taxable purpose (within the meaning of that Division).