EE 58Base value in section EE 56 when no previous deduction

1. This section applies when all the following apply to the item:

2. it is not a building; and
3. it is not an item of petroleum-related depreciable property; and
4. it is not an item that the person—
   1. acquired to use or have available for use in deriving assessable income or carrying on a business for the purpose of deriving assessable income; and
   2. first used for the purpose of deriving assessable income or carrying on a business for the purpose of deriving assessable income; and
5. it has been, since the person acquired it and first used it or had it available for use for any purpose, an item for which the person could not in any income year have been allowed a deduction for an amount of depreciation loss, whether because of the nature of the person’s use of the item or the person’s non-residence or for any other reason; and
6. in relation to the 1992–93 income year,—
   1. it was acquired by the person after the end of that income year; or
   2. it was an item described in section EZ 22(3) (Base value and total deductions in section EE 56: before 1 April 1995).

7. Base value is the item’s market value when the person starts to use it, or to have it available for use, for the purpose of deriving assessable income or carrying on a business for the purpose of deriving assessable income, reduced for an item that is an aircraft engine or aircraft by an amount referred to in section EZ 23BA(2) (Aircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased) for the item.