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-K - Other CGT events  

SECTION 104-210  Bankrupt pays amount in relation to debt: CGT event K2  

 ITAA 36

104-210(1)  

CGT event K2 happens if:


(a) you made a *net capital loss for an income year that, because of subsection 102-5(2) , cannot be applied in working out whether you made a *net capital gain for the income year or a later one; and


(b) you make a payment in an income year (the payment year ) in respect of a debt that was taken into account in working out the amount of that net capital loss; and


(c) ignoring subsection 102-5(2) , some part of the net capital loss (the denied part ) would have been applied (if you had made sufficient *capital gains) in working out whether you had made a *net capital gain for the payment year.

The payment can include giving property: see section 103-5 .

Archived:

S 104-210(1) (note) repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 234, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .

104-210(2)  

The time of the event is when you make the payment.

104-210(3)  

You make a capital loss equal to the smallest of:


(a) the amount you paid; or


(b) that part of it that was taken into account in working out the denied part; or


(c) the denied part less the sum of *capital losses you made as a result of previous payments you made in respect of the debt that was taken into account in working out the denied part.

104-210(4)  

In calculating that capital loss , disregard any amount you have received as *recoupment of the payment and that is not included in your assessable income.


 



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