大三下合作課

1、AlienationOf alServices eP555Whatisalienationof Ataxpayermayassigntoanother therighttoreceivecertain withoutassigningtheunderlyingproperty.Whywouldataxpayerwantto Toreducetherateoftaxpayableontheassigned e(esplitting)whilemaintainingownershipoftheasset.Sometaxpayersmayassign eto forarm’slengthconsiderationtoobtainataxconcession.Amajormethodofreducingtaxpayableisbyreducingassessable e.Onemethodofachievingthisisbydiverting(alienating) etoother Forexample,ataxpayermayconductabusinessasasoletraderwithanet eof$100,000. Thismeansthetaxpayerhasatopmarginaltaxrateof47%. However,ifthetaxpayerweretorunthebusinessasapartnershipwithanotherfamilymember(i.e.spouse),therewouldbetwo esof$50,000. Inthiscasethetopmarginaltaxrateonthe ewillbe30%,aswelltherewouldbetwotaxfreethresholdsof$6,000.Anothermethodof‘a(chǎn)lienating’ eistoassigntherightto eto Anauthorisentitledtoroyalties. Toreduce e,thatauthormayassign50%oftheroyaltyrightstoanother Isitpossibleto al Inboththeaboveexamplesitwillbenotedthatthealienationoccursbeforeanyeisearned.Thatisbecause rsonearning alservices ecannotassignanyofthis e(astheauthordid)because alservices ecannotbeassigned,unlikepropertyorbusiness e.Thereasonforthisisthatsomethingcannotbeassigneduntilitisownedbythetaxpayer. efrompropertycanbeassignedforitisnotthe ethatisassigned,butratheraninterestinthepropertythatgivesrisetothe e,asintheroyaltyexamplegivenabove,orbyallowinganother toownpartofthebusinessthatgivesrisetothe e,suchastheexampleofthepartnership.Thus, alservices ecannotbeassigneduntilactuallyearnedbythetaxpayer.However,assoonasthetaxpayerhas alservices eit estaxabletothetaxpayer.Itisthereforeofcriticalimportancetodetermine e al e services e,or Onesimplewaytoalienate e,whiayotherwisebe alservices e,istosetupacompany,havethecompanyenterintocontracts,andthendistributeprofitsviashares.Thus, mayresignasanemployee,setupaconsultancybusinessandconductthatbusinessthroughacompany.Theonlyconsultancyworkmayhoweverbetotheformeremployer,andtheamountpaidforconsultancymaybeequivalenttowhatwasthethenemployee’swagebeforeresigning.The‘consultant’willnowreceiveaconsultancyfeefromthecompanythroughwhichtheconsultancybusinessisrun.However,thisfeewillbelessthanwhatwaspreviouslysalary.Theremainderwillnowbedistributedasdividendsorsalarytoothermembersofthefamily.Therewillalsobeincreaseddeductionsavailable.Also,insomeinstancesalienating eisnolongereffectivebecauseofnewbroadantiavoidanceprovisions.Theseprovisionsaredealtwithbelow.Theuseofacompany,intheexamplegivenabove,isnotessentialforeffective esplitting.Anunincorporatedbusinessisjustaseffective.Anaccountantwhooperateshis/herownaccountancypracticefromhomeclearlyearnsalservices e.Asindicatedal ecannotgenerallybealienated.However,becausethis eisbeingearnedthrougha‘business’,(asopposedtoanemployeesituation,)itisonlythe eofthebusiness,lessexpenditure,thatformsthe alservices eoftheaccountant.Accordingly,iftheaccountantpaysasalarytotheirpartner(husband/wife),thatwillbeabusinessexpenseandthusaneffectivewayofstillsplitting Anti-AvoidanceProvisionsinDivisions85-Topreventthesplittingof ethroughinterposedentities,(pany,partnershiportrust),byconvertingwhatotherwisewouldbesalaryorwageinto e,anti-avoidanceprovisionswereintroduced.Theseprovisionsoperateontwolevels:ethatiscategorizedas alservices e(PSI),derivedbyaninterposedentity,(partnership,companyortrust),isdeemedtobe eoftheindividualwhoperformedtheservicesthatgaverisetothe e(Division86);Anumberofdeductionsaredeniedincalculatingtaxable einrelationtoecategorizedas alservices eforthepurposesoftheanti-avoidance Thispreventsataxpayersuchasanaccountantclaimingpaymentstoaspouseasadeductionagainst e(DivisionItisonlytheofthesethatweareconcernedwithcurrently,thedisallowanceofdeductionsisconsideredwhenwelookatallowabledeductions.TherelevantprovisionsarefoundintheITAA1997Divisions84,86and87particularly86-15(1).DivisionIndividualswhoarenotconducting alservicesbusinessesaredeniedcertaindeductionssuchas:Rent,mortgage,Interest,rates,landtaxPaymentstoassociates(withlimitedexceptions)Paymentsforassociatestosuperannuationfunds(withlimited UNLESSthereis rsonalServicesBusinessbeingconducted–S85-30ResultsTest(87-15)80%rule(87-UnrelatedclientstestEmploymenttestBusinessdeterminationin Section84-5Your*ordinary eor*statutory e,ortheordinaryeor eofanyotherentity,isyoural e eismainlyarewardforyouraleffortsorskills(orwouldmainlybesucharewardifitwasyour Section86-15(1)Yourassessable eincludesanamountof*ordinaryeor*statutory eofa* alservicesentitythatisyour*alservices e.Theamountincludedinyourassessable ecanbereducedbycertaindeductionstowhichthe alservicesentityisentitled:seesection86-20. Section87Explainwhatyourunderstandingofthetermalienationorsplitting emeans.Whyisthissignificantintermsoftax?Giveasimpleexampleof esplitting.[SeeMTGStudentneedtoindicateanunderstandingofbeingabletodivert etovarioustaxpayers,ratherthanonetaxpayerearning e.Apartnershipisaclearexampleofhowtoe.Asoletradercandivert easadeductionviawagespaidtoemployeesinthebusiness(i.e.familymember).Runningabusinessthroughacompanyallowsthecompanytoemployvariousfamilymembers.[Thereisalsotheissueofassigning e,butthismaybebeyondthestudents-wewillhaveagoatthiswhenwelookatpartnership].JosephworkedforalargeITcompanydevelosoftware.Atoflastfinancialyearhewascalledinbyhisemployerandtoldhewasbeingmaderedundant.Hewashoweveradvisedtosetupacompanyandhisserviceswouldbeutilizedthroughthecompanyasandwhenrequired.Thisarrangementhadcostsavingadvantagedforthecompanyinthatinavoidedanumberofemploymenttaxes.SuchanarrangementalsohadadvantagesforJosephbecausehecouldreducehistaxable e(throughthisdoesnotdecreasethe eheactuallygenerated,northeamountofdisposable eavailabletohisfamily.)ExplainhowsuchatransactioncanoperatetoreduceJoseph’s ebutnothisoverallExplainwhetherthiswillbeaneffectivemeansbywhichJosephcanreducehisassessableThisisaquestion eWhetherwhatJosephintendsiseffectiveornotdependsuponwhetherthe eisdeemedtobealservices e(PSI),orfromabusiness(PSE).IfitisPSI,thenthearrangementsbyJosephwillbeineffective,forrsoncannotalienatealservices e.Asfrom1July2000newrulesapplythatpreventPSI ebeingconvertedtoPSE InthisinstanceDivision86provides eearnedbyaninterposedentity(companyinthiscase)willbethe eoftheindividual(Joseph)whogeneratedthe eunlesstherequirementsofDivision87aresatisfied.Also,thedeductionsaninterposedentitycanclaimarelimitedtothosementionedinDivision85,unlesstherequirementsofDivision87aresatisfied.Division87providesifthe eisfromanactivitythatsatisfiesthe“resultstest”(section87-15)thenthe ewillbegenuinePSE e.Iftheresultstestcannotbesatisfiedand80%ormoreof eearnedthroughaninterposedentity(givingittheappearanceofbusinesse)isfromonesource, ewillbedeemedtobeal Iflessthan80%of eearnedthroughaninterposedentityisfromonesource,oneofthreeothertestsmuststillbesatisfied,beingtheunrelatedclientstestsection87-20),theemploymenttest(section87-25)orthebusinesspremisestest(section87-30).2、FBTGrossUpCalculatingTaxPayableTaxpayableisbaseduponthegrossedupvalueofallbenefitsprovidedbyanemployer.Thus,thefollowingfivestepsarerequiredtocalculateFBT.Identifythecalculatethevalueofeachdetermineifthebenefitisatype1ortype2benefit;grossupthetaxablevaluebaseduponwhetheratype1ortype2benefitisinvolved;calculatetaxonthegrossedupvalueofallbenefitsE–6.1GrossUpTheneedtogrossupiscontainedinsection5B.Theeffectofthisprovisionistoaddtothevalueofthebenefittheamountrequiredsothatthebenefitrepresentsabeforetaxsituation.Thisistoensurethatthesalarysacrificetakenbytheemployeeisequivalenttoanamountthatwouldhavehadtobereceivedifnobenefitwastakentoleavetheemployeewithavalueequaltothebenefitaftertaxhadbeenpaid.Thisincludesaddingback,wherenecessary,anyinputtaxcredittheproviderofthebenefitmayhaveclaimedonthebenefitundertheGST.Intakingabenefittheemployeesacrificessalarytotheextentofthecostoftheprovisionofthebenefittotheemployer.Itisforthisreasontherateoftaxisthetopmarginalrateoftax,plusmedicarelevyandnotthecompanyrateoftax,andthatgrossingupoccurs.ReasonfrossUp:EnsurenobenefitintakingafringebenefitFRINGEBENEFITSTAXASSESSMENTACT1986-SECTWorkingoutanemployer'sfringebenefitstaxable(1E)Anemployer'saggregatenon-exemptamountfortheyearoftaxisworkedoutasfollows.Individualgrossed-uptype1non-exempt(1F)Forthepurposesofstep1inthemethodstatementinsubsection(1E),theindividualgrossed-uptype1non-exemptamountofanemployeeinrelationtotheemployerfortheyearoftaxis:Forbenefitswhichallowtheemployertoobtainaninputtaxcredit(GSTchargedonacquisitionofbenefit)FBTrate+GSTrate(1-FBTrate)x(1+GSTrate)xFBT Individualgrossed-uptype2non-exempt(1G)Forthepurposesofstep1inthemethodstatementinsubsection(1E),theindividualgrossed-uptype2non-exemptamountofanemployeeinrelationtotheemployerfortheyearoftaxis:Type2aggregatefringebenefitamounts(basicallynotincludedinType1)NoGSTonacquisitionofbenefit:1(1–FBTrate) ***Equalsgross-uprateof1.8692***WillapplyiftheemployerwasnotregisteredfSTorwheretherelevantbenefitwasaGST-freeorinput-taxedsupply.Workoutanemployer'stype1aggregatefringebenefitsamountforayearoftaxasfollows.MethodstatementStep1. Identifythefringebenefitsinrespectofeachoftheemployer'semployeesthatareGST-creditablebenefits(seesection149A),andworkoutunderDivision3foreachofthoseemployeestheindividualfringebenefitsamountfortheyearoftaxinrelationtothosefringeStep AddupalltheindividualfringebenefitsamountsworkedoutunderstepStep3.Identifytheexcludedfringebenefits(otherthananamortisedfringebenefit)fortheyearoftaxinrespectofeachoftheemployer'semployeesthatareGST-creditablebenefits,andaddupthetaxablevaluesofallthoseexcludedfringebenefits.Note1: Subsection5E(3)explainswhatisanexcludedfringebenefit.Note2: Section149AexplainswhatisaGST-creditablebenefit.Step4.Addthetotalfromstep2tothetotalfromstep Theresultofstep4istheemployer'stype1aggregatefringebenefitsamountiftherearenoamortisedamountsinrelationtotheemployer.Step5. Addtothetotalfromstep4theamortisedamountfortheyearoftaxofeachamortisedfringebenefit(ifany)relatingtoanemployeeoftheemployer,theemployerandanyyearoftaxthatareGST-creditablebenefits.Thetotalamountistheemployer'stype1aggregatefringebenefitsamountfortheyearoftax. Section65CAexplainswhatisanamortisedfringeWorkoutanemployer'stype2aggregatefringebenefitsamountforayearoftaxasfollows.MethodstatementStep1. Identify,inrespectofeachoftheemployer'semployees,thefringebenefitsthatarenottakenintoaccountunderstep1ofthemethodstatementinsubsection(3),andworkoutunderDivision3foreachofthoseemployeestheindividualfringebenefitsamountfortheyearoftaxinrelationtothosefringebenefits.Step AddupalltheindividualfringebenefitsamountsworkedoutunderstepStep3. Identify,inrespectofeachoftheemployer'semployees,theexcludedfringebenefits(otherthananamortisedfringebenefit)fortheyearoftaxthatarenottakenintoaccountunderstep3ofthemethodstatementinsubsection(3),andaddupthetaxablevaluesofallthoseexcludedfringebenefits. Subsection5E(3)explainswhatisanexcludedfringeStep Addthetotalfromstep2tothetotalfromstep Theresultofstep4istheemployer'stype2aggregatefringebenefitsamountiftherearenoamortisedamountsorreduciblefringebenefitsinrelationtotheStep5. Addtothetotalfromstep4theamortisedamountfortheyearoftaxofeachamortisedfringebenefit(ifany)relatingtoanemployeeoftheemployer,theemployerandanyyearoftaxthatisnottakenintoaccountunderstep5ofthemethodstatementinsubsection(3).Note1: Theresultofstep5istheemployer'stype2aggregatefringebenefitsamountiftherearenoreduciblefringebenefitsinrelationtotheemployer.Note Section65CAexplainswhatisanamortisedfringeStep6.Subtractfromthetotalfromstep5thereductionamountfortheyearoftaxofeachreduciblefringebenefit(ifany)relatingtoanemployeeoftheemployer,theemployerandtheyearoftax.Thetotalamountistheemployer'stype2aggregatefringebenefitsamountfortheyearoftax.HowtocalculateyourYoumustself-assessyourfringebenefitstax(FBT)payablewhenyoulodgeyourFBTreturnat ofeachFBTyear(beginning1Aprilandending31March).WhenworkingoutyourFBTliabilityyoumustgross-upthetaxablevalueofbenefitsyouprovidetoreflectthegrosssalaryemployeeswouldhavetoearnatthehighestmarginaltaxrate(includingMedicarelevy)tobuythebenefitsafterpayingtax.Therearetwoseparategross-upratesusedtocalculatefringebenefitstaxablehighergross-uprate(type1)isusedwhereyou(orotherbenefitproviders)areentitledtoaGSTcreditfSTpaidonbenefitsprovidedtoanemployee.ThesebenefitsareknownasGST-creditablebenefits.Thecurrenttype1grossuprateis2.0802lowergross-uprate(type2)isusedwherethereisnoentitlementtoaGSTcredit.Thecurrenttype2grossuprateis1.8868.Thetaxpayableisthefringebenefitstaxableamountmultipliedbytherateoftax.ThecurrentFBTrateis47%.Whereyouprovidetaxablefringebenefitstoemployees,therearesomedistinctstepsinvolvedincalculatingyourFBTliability.UsethefollowingstepstocalculatehowmuchFBTyouhavetopay:3、稅法意義上的enterprisermustbeNotaxablesupplyifenterpriseisnotandneednotberegisteredDivision23–section23.5WhoisrequiredtobeYouarerequiredtoberegisteredunderthisActyouare*carryingonan*enterprise;your*GSTturnovermeetsthe*registrationturnover Itistheentitythatcarriesontheenterprisethatisrequiredtoberegistered(andnottheenterprise).ANEWTAXSYSTEM(GOODSANDSERVICESTAX)ACT1999-SECT Anenterpriseisanactivity,orseriesofactivities,intheformofa*business;intheformofanadventureorconcerninthenatureoftrade;onaregularorcontinuousbasis,intheformofalease,licenceorothergrantofaninterestinproperty;orbythetrusteeofafundthatiscoveredby,orbyanauthorityorinstitutionthatiscoveredby,Subdivision30-Bofthe*ITAA1997andtowhichdeductiblegiftscanbemade;or byatrusteeofa*complyingsuperannuationfundor,ifthereisnotrusteeofthefund,byrsonwhomanagesthefund;orbyacharity;bytheCommonwealth,aStateoraTerritory,orbyabodycorporate,orcorporationsole,establishedforapublicpurposebyorunderalawoftheCommonwealth,aStateoraTerritory;byatrusteeofafundcoveredbyitem2ofthetableinsection30-15oftheITAA1997orofafundthatwouldbecoveredbythatitemifithadanABN.byrsonasanemployeeorinconnectionwithearning*withholdingpaymentscoveredbysubsection(4)(unlesstheactivityorseriesisdoneinsupplyingservicesastheholderofanofficethatthehasacceptedinthecourseoforinconnectionwithanactivityorseriesofactivitiesofakindmentionedinsubsection(1));or Actsdoneasmentionedinparagraph(a)willstillformpartoftheactivitiesoftheenterprisetowhichtheprovidesworkorservices.byanindividual(otherthanatrusteeofacharitablefund,orofafundcoveredbyitem2ofthetableinsection30-15oftheITAA1997orofafundthatwouldbecoveredbythatitemifithadanABN),ora*partnership(allormostofthemembersofwhichareindividuals),withoutareasonableexpectationofprofitain;orasamemberofalocalerningbodyestablishedbyorundera*Staawor*law(exceptalocalerningbodytowhichparagraph12-45(1)(e)inSchedule1totheTaxationAdministrationAct1953applies).Fortheavoidanceofdoubt,thefactth tivitiesofanentityarelimitedtomakingstomembersoftheentitydoesnotpreventthoseactivities:beingintheformofa*businesswithinthemeaningofparagraph(1)(a);beingintheformofanadventureorconcerninthenatureoftradewithinthemeaningofparagraph(1)(b).Thissubsectioncoversa*withholdingpaymentcoveredbyanyoftheprovisionsinSchedule1totheTaxationAdministrationAct1953listedinthetable.4、DivisionItwillberecalledthats.8-1allowsforthedeductionoflossesfromassessable e.Thispassesnotonlylossessuchastheft,butalsobusinesslosseswhereexpenditurefortheisgreaterthan e.Suchlossesareavailablefordeductionagainstassessable einsubsequentyears.Therearehoweveranumberofexceptionstothisgeneralrule.Thetwoprimaryexceptionswewillconsiderare:DivisionNoncommercialbusinessDivisionChangeofownershipofaDivision35–NonCommercialTopreventcertainactivitiesbeingrepresentedasabusinessactivity,wheninrealityitwaslittlemorethanaprivatepursuit,Division35wasintroduced.ThisDivisiondisallows( mercial)businesslossesbeingutilizedbyoffsettingthemagainstotherassessable e(i.e.salary)ofthetaxpayerfortheyear.Theoperationoftheseprovisionsthereforedependsuponascertainingtheexistenceofanoncommercialbusinessactivity.Anoncommercialbusinessisonethat:IsoperatedAnindividual,doesnotsatisfyoneof4 e profittest(35- realproperty otherassets Pre-businessandpost-businesscapitalexpenditureCommercialitytestsRestrictionondeducting WhererestrictionsdonotapplySECT TheobjectofthisDivisionistoimprovetheintegrityofthetaxationsystempreventinglossesfrom mercialactivitiesthatare*carriedonas*businessesbyindividuals(aloneorinpartnership)beingoffsetagainstotherassessable e;andpreventingpre-businesscapitalexpenditureandpost-businesscapitalexpenditurebyindividuals(aloneorinpartnership)inrelationto mercialactivitiesbeingdeductibleundersection40-880(businessrelatedcosts);ThisDivisionisnotintendedtoapplytoactivitiesthatdonotconstitute*carryingon*business(forexample,thereceipt efrompassive mercial merciallossrulesinDiv35inPt2-5ITAA1997aredesignedtorestrictlossesfroma mercialbusinessactivityfrombeingoffsetagainst fromothersources,unlesstheactivitysatisfiesoneofthe"commercialitytests"discussedat[8620]ortheCommissionerexercisesthediscretionnottoapplytherules(see[8640]).Iftherulesapply,the merciallossisdeferredandmaybeoffsetinalateryearagainstprofitsfromthesameactivityor,incertaincircumstances,againstother e.Division35doesnotapplyto"low e"primaryproducersandprofessionalartists:see[8610].Notealsothat merciallossesmadebytaxpayerswithanadjustedtaxable eexceeding$250,000ared:seeTherulesapplyifanindividual,eitheraloneorinpartnership,carriesona mercial"businessactivityandthedeductionsattributabletoth tivityin eyearexceedtheassessable e(ifany)fromth tivityinthat year(iealossismade).Thelosscannotbeoffsetagainstotherassessable einthatyearunlessanexceptionapplies:(see[8620]):s35-10(2).Forthesepurposes,theamountsattributabletothebusinessactivitythatanindividualtaxpayercanotherwisedeductareallthoseamountsotherwisedeductibleunderthe etaxlaw,totheextentthattheyrelatetothecarryingonoftheparticularbusinessactivityintheeyearinquestion:RulingTR2001/14.Accordingtotheruling,theexpression"attributableto"requiresa"causativeconnection"withtheactivity,inthesenseofbeingsourcedfromororiginatinginsomeelementofthebusinessactivity.ThisviewissupportedbythedecisioninWatsonvDCT(2010)75ATR224(notedat[8620]).Ifadeductionisattributabletomorethanone e-producingactivityandoneisamercialbusinessactivity,thedeductionmayhavetobeapportioned:seeDeterminationTDWhererestrictionsdonotTherestrictionsinDiv35ondeductinga merciallossdonotapplyinthefollowingcircumstances:thelossdoesnotarisefromabusinessactivity:see[8thelossarisesfromaprimaryproductionorprofessionalartsbusinessandthetaxpayer'sassessable efortheyearfromothersourcesislessthan$40,000:seethetaxpayersatisfiesoneofthe"commercialitytests"(ietheassessable profits,realpropertyorotherassetstest):see[8620];ortheCommissionerexercisesthediscretionnottoapplyDiv35:see[8 merciallossrulesdonotprohibittheoffsetoflossesifanyofthefollowingcommercialitytestsaresatisfied:s35-10(1). etest–assessable e(ieordinaryandstatutory e)fromthebusinessactivityforthe eyearisatleast$20,000,orwouldreasonablybeestimatedtobeatleast$20,000iftheactivitywerecarriedonforthewholeyear:s35-30.RulingTR2001/14discusseshowtomakeareasonableestimate(thereisnothingintheITAA1997thatallowsanestimatetobelaterrevoked).Therulingalsostatesthatfundsrepaidfromafarmmanagementdepositmaybeassessable fromtheparticularbusinessactivity(seeExample5A).Anyincreaseinvalueofthetaxpayer'stradingstockthatisbroughttoaccountunders70-35(2)(see[5230])andabalancingadjustmentthatarisesiftheterminationvalueofadepreciatedassetexceedsthewrittendownvalue(see[10850])shouldbeassessable eforthepurposesofthistestastheyare"fromthebusinessactivity".Interestfromabusinessbankaccountshouldalsobeincluded.InWatsonvDCT(2010)75ATR224,paymentsunderan ereplacementpolicytoanindividualwhocarriedonafinancialplanningbusinesswerenot efromthebusinessactivityastheywerealtothetaxpayer.Accordingly,thosepaymentscouldnotbeoffsetagainstlossesfromtheProfitstest–theactivityhasmadeaprofit(fortaxpurposes)inatleast3ofthe eyears,includingthecurrentyear(inthecaseofapartnership,itisthetaxpayer'sshareofpartnership eanddeductionsthatistakenintoaccount):s35-35.Achangeofownershipinaparticularyearwillnotseeminglyprevent"profits"fromabusinessactivity,madeunderapreviousowner,frombeingtakenintoaccountforthepurposeofthistest,providedthereisasufficientcontinuityofidentityofthebusinessactivity(thismayincludewherethetaxpayerpurchasesaprimaryproductionbusinessfromafamilytrust:seeExample6AinRulingTR2001/14).dpre-businesscapitalexpenditureotherwisedeductibleunders40-880(see[101150])butfortheoperationofs35-10(2C)(see[8630])willnotaffecttheoperationoftheprofitstestinthecurrent eyear.Realpropertytest–thetotalvalueofrealproperty,orinterestsinrealproperty,usedonacontinuingbasisincarryingontheactivityisatleast$500,000:s35-40.Thehigherofmarketvalue(see[3210])orreducedcostbaseisused,workedoutatoftheyearor,ifappropriate,whenthebusinessactivityceasedortheassetwasdisposedof.Dwellings,andadjacentlandusedinassociationwiththedwelling,usedmainlyforprivatepurposesareexcluded,alongwithanytenant'sfixtures(seeRulingTR2001/14,paras64A-64C).Iflandhas epartnershipproperty,apartnercanincludethelandforthepurposesoftherealpropertytest,eventhoughthatpartnerdoesnothavelegaltitletotheland:seeATOID2003/374.Otherassetstest–thetotalvalueofotherassetsusedonacontinuingbasisincarryingontheactivityisatleast$100,000:s35-45.Otherassetsrelevantforthistestaredepreciableassets,tradingstock,assetsleasedfromanotherentityandtrademarks,patents,copyrightsandsimilarrights(inATOID2004/715,theTaxOfficesaidthat"similarrights"referstoanyrightswhichprotecttheproductofone 'sworkbyhandorbrainagainstunauthoriseduseorexploitationbyanother–theATOIDwaswithdrawnbutonlybecauseitwasconsideredtobeastraightforwardapplicationofthelaw).Cars,motorcyclesandsimilarvehiclesareexcluded(see[9100]forthedefinitionofa"car").All-terrainVehicles(ATVs)andagriculturalmotorcycles(ag-bikes)areconsideredtobemotorcyclesforthesepurposesandarethereforeexcluded.A2-tonnetruckisnota"car"or"similarvehicle"andthereforecanbeincluded.Arallycarmaybea"car"forthesepurposes(seeExample7BinRulingTR2001/14).Thevalueofanassetdependsonwhattypeitis,egwrittendownvalueifadepreciatingasset(see[10540]),closingvalueiftradingstock(see[5220])andreducedcostbaseifinlectualproperty:see[14090].Thevalueisworkedoutattheendofthe eyearor,ifthebusinessactivityceasesduringtheyear,atthetimeofcessationoranyearlierdisposaloftheasset.Pre-businessandpost-businesscapitalCertainpre-businessandpost-businesscapitalexpenditure("blackholeexpenditure")maybedeductedover5 eyears(s40-880ITAA1997):see[101150].The Anindividualtaxpayerwillnotbeabletodeductunders40-880pre-businesscapitalexpenditure,inrelationtoabusinessactivitythetaxpayerproposestocarryon(eitheraloneorinpartnership),foran eyearbeforetheoneinwhichthebusinessactivitystartstobecarriedon:s35-10(2B)(a).However,suchexpenditureisdeemedtobeattributabletothebusinessactivityinthe eyeartheactivitystartstobecarriedonandisdeductibleinthat eyearsubjecttothe mercialrulesinDiv35:s35-10(2C).Thus,inthe eyearabusinessactivitystartstobecarriedon,aloss(includingthedeductiblepre-businesscapitalexpenditure)fromthebusinessactivitycanonlybeoffsetagainstother eifoneofthe4commercialitytestsdiscussedat[8620]issatisfied,theCommissionerhasexercisedthediscretionnottoapplytherules(see[8640])orthebusinessactivityisaprimaryproductionorprofessionalartsbusinessandthe efromothersourceswaslessthan$40,000:see[8610].ThelossmaybecarriedforwardinaccordancewiththerulesdiscussedSimilarly,anindividualtaxpayercannotdeductunders40-880pre-businesscapitalexpenditure,inrelationtoabusinessactivityanotherentity(thatisnotanindividual)proposestocarryon(eitheraloneorinpartnership),foran eyearbeforetheoneinwhichthebusinessactivitystartstobecarriedon:s35-10(2B)(b).However,theexpenditureisdeductibleintheyearthebusinessactivitystartstobe