35‑40 Real property test35‑40 Real property test

#### 35‑40 Real property test (1) The rules in section 35‑10 do not apply to a \*business activity for an income year if the total \*reduced cost bases of real property or interests in real property used on a continuing basis in carrying on the activity in that year is at least $500,000. (2) You may use the \*market value of the real property or interest if that value is more than its \*reduced cost base. (3) The \*reduced cost base or \*market value is worked out: (a) as at the end of the income year; or (b) if you stopped carrying on the \*business activity during the year: (i) as at the time you stopped; or (ii) if you disposed of the asset before that time in the course of stopping carrying on the activity—as at the time you disposed of it. (4) However, these assets are not counted for this test: (a) a \*dwelling, and any adjacent land used in association with the dwelling, that is used mainly for private purposes; (b) fixtures owned by you as a tenant.