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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-E - Trusts  

SECTION 104-107A  AMIT - cost base reduction exceeds cost base: CGT event E10  

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104-107A(1)  

CGT event E10 happens if:


(a) you are a *member of an *AMIT in respect of an income year because you have a *CGT asset that is your unit or your interest in the AMIT; and


(b) the *cost base of that asset is reduced under subsection 104-107B(2) at a time; and


(c) the asset's *AMIT cost base net amount for the income year in which the reduction occurs exceeds the cost base of the asset.

104-107A(2)  

The time of the event is the time at which the reduction occurs under section 104-107B.

104-107A(3)  

You make a capital gain equal to the excess mentioned in paragraph (1)(c).

Note 1:

If you make a capital gain, the cost base and reduced cost base of the CGT asset are reduced to nil (see paragraph 104-107B(2)(a)).

Note 2:

You cannot make a capital loss.

Exceptions

104-107A(4)  

A *capital gain you make from *CGT event E10 is disregarded if you *acquired the *CGT asset that is the unit or interest before 20 September 1985.


 



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