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Taxation Determination TD 93/56, which issued on 1 April 1993, deals with the cost of a car obtained by inheritance, gift or prize at no actual cost for the purposes of working out a deduction for car expenses using the '12% of cost method' under subsection 82KW(3) of the Income Tax Assessment Act 1936 . The Determination states that, in accordance with the official practice for depreciation purposes (as set out in Taxation Ruling IT 2308), the cost of the car is based on a notional cost equal to the depreciated value or notional depreciated value of the car immediately prior to the date of acquisition.

For the 1997-98 income year and later years, deductions for car expenses using the '12% of original value' method are worked out under Subdivision 28-D of the Income Tax Assessment Act 1997 (ITAA 1997).

From 1 July 2001, the former depreciation rules were replaced with Division 40 of the ITAA 1997. For the purposes of working out deductions for car expenses under Subdivision 28-D of the ITAA 1997, the cost of a depreciating asset obtained by inheritance, gift or prize at no actual cost is now worked out under section 40-180 of the ITAA 1997.

As Taxation Determination TD 93/56 is no longer current, it is accordingly withdrawn.