Under the Uniform Capital Allowance provisions in Division 40 of the ITAA 97, which of the following statements is most correct?

Select one:

1. Whilst improvements to land may be depreciable, land itself is not able to be depreciated under Division 40.

2. Capital works expenditure can be deducted under Division 40.

3. A depreciating asset you hold starts to decline in value only when you use it for income producing purposes.

4. Intellectual property held as trading stock could be a depreciating asset for tax purposes.

5. An asset held under a hire purchase agreement could not be a depreciating asset to the person using the asset.