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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.292

Adjustments--assets used for both general tax purposes and R&D activities

  (1)   This section applies if:

  (a)   a * balancing adjustment event happens in an income year (the event year ) for an asset you * held and for which:

  (i)   you 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)   you could have deducted, for an income year, an amount as described in subparagraph   (i) if you had used the asset; and

  (b)   you are entitled under section   355 - 100 to * tax offsets for one or more income years for deductions (the R&D deductions ) under section   355 - 305 for the asset.

Note 1:   This section applies in a modified way if you have deductions for the asset under former section   73BA or 73BH of the Income Tax Assessment Act 1936 (see section   40 - 292 of the Income Tax (Transitional Provisions) Act 1997 ).

Note 2:   To the extent that any amount is included in your assessable income under section   40 - 285 in relation to R&D activities, you may have an additional amount included in your assessable income (see section   355 - 447).

Note 3:   To the extent any amount that you are entitled to as a deduction under section   40 - 285 relates to R&D activities, you may have an additional amount you can deduct (see section   355 - 466).

Section   40 - 290 to be applied as if use for conducting R&D activities were use for a taxable purpose

  (2)   In applying section   40 - 290 (including references in that section to the reduction of deductions under section   40 - 25) in relation to the asset, assume that using the asset for a * taxable purpose includes using it for the purpose of conducting the * R&D activities to which the R&D deductions relate.


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