A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

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.
 View history reference

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
 View history reference


(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S 104-15(4) (note) repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 233, effective 14 September 2006.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.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page