25‑120 Transitional—deduction for paymen25‑120 Transitional—deduction for payment of rent from land investment by operating entity to asset entity

#### 25‑120 Transitional—deduction for payment of rent from land investment by operating entity to asset entity (1) This section applies if the requirements in subsection 12‑440(1) or (2) in Schedule 1 to the Taxation Administration Act 1953 are satisfied in relation to a \*cross staple arrangement. (2) An entity that is an \*operating entity in relation to the \*cross staple arrangement can deduct, for an income year, an amount of \*rent from land investment if: (a) another entity derives or receives the amount from the operating entity at a time that: (i) is in the income year; and (ii) is on or after 27 March 2018; and (iii) meets the requirements in subsection 12‑440(4) of Schedule 1 to the Taxation Administration Act 1953; and (b) the other entity is an \*asset entity in relation to the cross staple arrangement; and (c) apart from this subsection, the operating entity could otherwise deduct the amount under this Act; and (d) the amount is \*excepted MIT CSA income of the asset entity for the income year. (3) If the \*asset entity is not a \*managed investment trust in relation to the income year, for the purposes of paragraph (2)(d), treat it as a managed investment trust in relation to the income year.