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.