Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * R&D entity (the partner ) has an amount under this section if:
(a) the partner is a partner in an * R&D partnership; and
(b) a * balancing adjustment event happens in the present year for a * depreciating asset * held by the R&D partnership and for which:
(i) the R&D partnership 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) the R&D partnership could have deducted, for an income year, an amount as described in subparagraph (i) if it had used the asset; and
(c) one or more partners (including the partner) in the R&D partnership are entitled under section 355 - 100 to * tax offsets for one or more income years for deductions under section 355 - 520 for the asset; and
(d) the R&D partnership can deduct an amount (the section 40 - 285 amount ) for the asset under section 40 - 285 (after applying subsection 40 - 293(2)) for the present year.
Note: This section applies in a modified way if the partners have deductions for the asset under former section 73BA or 73BH of the Income Tax Assessment Act 1936 (see section 40 - 293 of the Income Tax (Transitional Provisions) Act 1997 ).
(2) The amount is the partner's proportion of the amount worked out as follows:
where:
"total decline in value" means the * cost of the asset less its * adjustable value.
"total R&D deductions" means the sum of each partner's deductions mentioned in paragraph (1)(c) of this section.