Commentary

C2.901 Definition of wasting asset

Capital gains tax
Capital gains tax | Commentary

C2.901 Definition of wasting asset

Capital gains tax | Commentary

Division C2.9     Wasting assets

For updates affecting this Division please see Part C0 Updates

Treatment of wasting assets

C2.901 Definition of wasting asset

A wasting asset is an asset with a predictable life not exceeding 50 years1. The expression 'predictable life' is not generally defined, but the life of tangible movable property is its useful life, having regard to the purpose for which it was acquired or provided by the person disposing of it2.

The predictable life of an asset is determined by reference to what was known or ascertainable at the time when the asset was acquired or provided by the disponor3. The intended use of the asset at that time is therefore relevant in estimating the

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