Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies in working out the amount that the transferor or transferee can deduct for the BAE year under subsection 328 - 180(1) (assets costing less than $1,000) or subsection 328 - 190(2) (assets that will be pooled) for a * depreciating asset that the transferor or transferee started to use, or have * installed ready for use, for a * taxable purpose during the BAE year.
Note: This threshold may be affected by section 328 - 180 (about temporary increased access to accelerated depreciation) or 328 - 181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .
Asset first used by transferor
(2) If the asset was first used or * installed ready for use by the transferor, the amount that can be deducted under subsection 328 - 180(1) or 328 - 190(2) for the asset for the BAE year is split equally between:
(a) the transferor and the transferee; or
(b) if there are 2 or more occurrences of * balancing adjustment events for relevant entities for the BAE year and a roll - over is chosen for each occurrence--the entities concerned.
Asset first used by transferee
(3) If the asset was first used or * installed ready for use by the transferee:
(a) the transferor cannot deduct anything for the asset for the BAE year; and
(b) the amount that can be deducted under subsection 328 - 180(1) or 328 - 190(2) for the asset for the BAE year is:
(i) deductible by the transferee; or
(ii) if there are 2 or more occurrences of * balancing adjustment events for relevant entities for the BAE year and a roll - over is chosen for each occurrence--split equally between the entities concerned (except ones that did not use the asset or have it installed ready for use).
Example: To continue the example from section 328 - 247, the transferee buys an asset on the 150th day of the BAE year for $800.
On the 250th day of the year, Evan joins the transferee partnership. The new transferee partnership is a small business entity for the BAE year, and chooses to use this Subdivision for that year, and a further roll - over is chosen.
The original transferor cannot deduct anything for the asset. The original transferee (now a transferor) and the new transferee can deduct $400 each.
Special rule for assets costing less than $1,000
(4) Subsection (5) applies if:
(a) the transferor started to use, or have * installed ready for use, an asset of a kind mentioned in paragraph 328 - 180(1)(b) during the BAE year; and
(b) a * balancing adjustment event occurs for that asset before the BAE day.
Note: This threshold may be affected by section 328 - 180 (about temporary increased access to accelerated depreciation) or 328 - 181 (about temporary full expensing) of the Income Tax (Transitional Provisions) Act 1997 .
(5) The transferee cannot deduct anything for the asset for the BAE year, and subsection 328 - 215(4) does not apply to the transferee in relation to the asset.