BLAW30002 Lecture Notes - Lecture 9: Debt Relief, Dental Surgery, British Association For Immediate Care

• School: University of Melbourne
• Department: Business Law
• Course: BLAW30002
• Professor: All

Document Summary

40-880 gives you a deduction for those expenses over 5 years. So these are things like start-up costs, legal expenses that relate to business structure. Note: you can"t go straight to 40-880 because you have to do it in this order because depreciating assets are exempt from being cgt assets which is why you start with them. And 40-880 says you can"t claim a deduction under 40-880 for expenses that relate to a depreciating asset or a cgt asset. Applies to depreciating assets (s 40-30(1)) [everything except land] held for taxable purposes (s 40-25(7)- purpose of producing assessable income) Lessor (cid:198)legal owner; lessee (cid:198)economic owner (bears ownership). Tax purpose is lessee can claim depreciation deductions . (cid:131) (when you sell asset) adjustment on disposal (cid:858)(cid:271)ala(cid:374)(cid:272)i(cid:374)g adjust(cid:373)e(cid:374)t(cid:859) (cid:190) co(cid:373)pare (cid:858)ter(cid:373)i(cid:374)atio(cid:374) (cid:448)alue(cid:859) & (cid:858)adjusta(cid:271)le (cid:448)alue(cid:859) Adjustable value(cid:198)cost less depreciation until date of balancing adjustment if what you receive is more, then income(cid:198)assessable; if less(cid:198)deduction aka tv