Capital Allowances: cost - interaction of car limit and input tax credit

the first element of the cost of the car is reduced by the amount of any input tax credit to which the taxpayer is entitled (subsection 27-80(1) of the ITAA 1997); and 2. the first element of cost is further reduced to the car limit to the extent it exceeds that limit (section 40-230 of the ITAA 1997).