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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-B - Use and enjoyment before title passes  

SECTION 104-15  Use and enjoyment before title passes: CGT event B1  

104-15(1)  

 ITAA 36
CGT event B1 happens if you enter into an agreement with another entity under which:


(a) the right to the use and enjoyment of a *CGT asset you own passes to the other entity; and


(b) title in the asset will or may pass to the other entity at or before the end of the agreement.
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Note:

Division 240 provides for the inclusion of amounts under hire purchase agreements in assessable income.

104-15(2)  

 ITAA 36
The time of the event is when the other entity first obtains the use and enjoyment of the asset.

104-15(3)  

 View history reference ITAA 36
You make a capital gain if the *capital proceeds from the agreement are more than the asset ' s *cost base. You make a capital loss if those capital proceeds are less than the asset ' s *reduced cost base.

Exceptions

104-15(4)  

 ITAA 36
A *capital gain or *capital loss you make is disregarded if:


(a) title in the asset does not pass to the other entity at or before the end of the agreement; or
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(b) you *acquired the asset before 20 September 1985.

Archived:

S 104-15(4) (note) repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 233, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .


 



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