Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 40.435

Private or exempt use of assets

             (1)  When you allocate a * depreciating asset to a low-value pool, you must make a reasonable estimate of the percentage (the taxable use percentage ) of your use of the asset (including any past use) that will be for a * taxable purpose over:

                     (a)  for a * low-cost asset--its * effective life; or

                     (b)  for a * low-value asset--any period of its effective life that is yet to elapse at the start of the income year for which you allocate it to the pool.

             (2)  For the purposes of subsection (1), disregard a * taxable purpose that is the * purpose of producing assessable income:

                     (a)  from the use of * residential premises to provide residential accommodation; but

                     (b)  not in the course of carrying on a * business;

if, apart from subsections 40-25(5) and 40-27(6), section 40-27 would reduce your deductions under subsection 40-25(1) for the asset.



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