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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-I - Australian residency ends  

SECTION 104-170  Trust stops being a resident trust: CGT event I2  

 ITAA 36

104-170(1)  

CGT event I2 happens if a trust stops being a *resident trust for CGT purposes.

104-170(2)  

The time of the event is when the trust stops being one.

104-170(3)  

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The trustee needs to work out if it has made a *capital gain or a *capital loss for each *CGT asset that it owned (in the capacity as trustee of the trust) just before the time of the event except one that is *taxable Australian property:


(a) covered by item 1 or 3 of the table in section 855-15 ; or


(b) covered by item 4 of that table because it is an option or right to *acquire a *CGT asset covered by item 1 or 3 of that table.

104-170(4)  

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The trustee makes a capital gain if the *market value of the asset (at the time of the event) is more than the asset ' s *cost base. The trustee makes a capital loss if that market value is less than the asset ' s *reduced cost base.

104-170(4A)  

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If the asset is an *indirect Australian real property interest, or an option or right to acquire such an interest, this Part and Part 3-3 apply to the asset as if the first element of the *cost base and *reduced cost base of the asset (just after the time of the event) were its *market value at the time of the event.

104-170(4B)  

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Subsection (4A) does not apply if the *capital gain or *capital loss the trustee makes is disregarded under subsection (5).

Exception

104-170(5)  

A *capital gain or *capital loss the trustee makes is disregarded if it *acquired the asset before 20 September 1985.


 



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