Section DF 2 — Income Tax Act 2007: Repayment of grant-related suspensory loans

DF 2 Repayment of grant-related suspensory loans Deduction (1) A person is allowed a deduction for the amount of a repayment that they are required to make of some or all of a grant-related suspensory loan to the extent to which the amount relates to a payment to which section DF 1(2) applies. Timing of deduction (2) The deduction is allocated to the income year in which repayment is first required. Amount of depreciation loss (3) If a person is required to repay some or all of a grant-related suspensory loan, then, to the extent to which section DF 1(3) and (4) apply to the loan,— (a) the person is allowed a deduction for an amount of depreciation loss for the item; and (b) the amount of depreciation loss is the total of the amounts of depreciation loss for the item for which the person would have been allowed a deduction if section DF 1(3) and (4) had not applied. Quantifying amount of depreciation loss (4) For the purpose of quantifying the amount of depreciation loss for the item in the income year and in later income years, the following matters must be taken into account: (a) the amount of the deduction under subsection (3); and (b) the total of the amounts of depreciation loss for the item for which the person has been allowed a deduction; and (c) the person’s expenditure on acquiring, constructing, installing, or extending the item. Link with subpart DA (5) This section supplements the general permission and overrides the capital limitation for the amount described in subsection (1). The other general limitations still apply. Defined in this Act: amount , capital limitation , deduction , depreciation loss , general limitation , general permission , grant-related suspensory loan , income year , pay , supplement , Compare: 2004 No 35 s DF 2