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(2) or 328 - 190(3) for expenditure incurred by the transferor or transferee during the BAE year that is included in the second element of the * cost of a depreciating asset.
Expenditure incurred by transferor
(2) If the expenditure was incurred by the transferor, the amount that can be deducted under subsection 328 - 180(2) or 328 - 190(3) 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.
Expenditure incurred by transferee
(3) If the expenditure was incurred by the transferee:
(a) the transferor cannot deduct anything for the expenditure for the BAE year; and
(b) the amount that can be deducted under subsection 328 - 180(2) or 328 - 190(3) for the expenditure 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.
Special rule for expenditure on assets costing less than $1,000
(4) Subsection (5) applies if:
(a) the transferor incurred the expenditure in relation to an asset of a kind mentioned in paragraph 328 - 180(1)(b); 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 expenditure for the BAE year, and subsection 328 - 215(4) does not apply to the transferee in relation to the asset.