Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Subdivision reverses the effect of deductions for lease payments for a car leased to you (or to your associate), but only if you make a profit by disposing of the car after acquiring it from the lessor. The smallest of these amounts is included in your assessable income:
ï‚· your profit on the disposal;
ï‚· the total deductible lease payments for the period of the lease;
ï‚· the total amounts you could have deducted for the car's decline in value if, instead of leasing it, you had owned it and used it solely for the purpose of producing assessable income.
Table of sections
20 - 105 Map of this Subdivision
The usual case
20 - 110 Disposal of a leased car for profit
20 - 115 Working out the profit on the disposal
20 - 120 Meaning of notional depreciation
The associate case
20 - 125 Disposal of a leased car for profit
Successive leases
20 - 130 Successive leases
Previous disposals of the car
20 - 135 No amount included if earlier disposal for market value
20 - 140 Reducing the amount to be included if there has been an earlier disposal
Miscellaneous rules
20 - 145 No amount included if you inherited the car
20 - 150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20 - 155 Exception for particular cars taken on hire
20 - 157 Exception for small business entities
Disposals of interests in a car: special rules apply
20 - 160 Disposal of an interest in a car