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INCOME TAX ASSESSMENT ACT 1997 - SECT 122.145

Rules for working out what a liability in respect of an interest in an asset is

  (1)   These rules are relevant to working out what are the liabilities in respect of a partner's interests in an asset.

  (2)   A liability incurred for the purposes of a * business that is not a liability in respect of interests in a specific asset or assets of the business is taken to be a liability in respect of the partner's interests in all the assets of the business.

Note:   An example is a bank overdraft.

  (3)   If a liability is in respect of both:

  (a)   the partner's interests in one or more assets that the partner * acquired on or after 20   September 1985; and

  (b)   the partner's interests in one or more assets that the partner acquired before that day;

the proportion of the liability that is in respect of the partner's interests that the partner acquired on or after that day is equal to:

Start formula start fraction The *market value of the partner's interest that the partner *acquired on or after that day over The total of the market values of all the partner's interest in assets that the liability is in respect of end fraction end formula


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