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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  

SECTION 104-5  Summary of the CGT events  

 View history reference [No equivalent]

CGT events
Event number and descriptionTime of event is:Capital gain is:Capital loss is:
A1 Disposal of a CGT assetwhen disposal contract is entered into or, if none, when entity stops being asset ' s ownercapital proceeds from disposal less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-10 ]
.......... .
B1 Use and enjoyment before title passeswhen use of CGT asset passescapital proceeds less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-15 ]
.......... .
C1 Loss or destruction of a CGT assetwhen compensation is first received or, if none, when loss discovered or destruction occurredcapital proceeds less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-20 ]
.......... .
C2 Cancellation, surrender and similar endingswhen contract ending asset is entered into or, if none, when asset endscapital proceeds from ending less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-25 ]
.......... .
C3 End of option to acquire shares etc.when option endscapital proceeds from granting option less expenditure in granting itexpenditure in granting option less capital proceeds
[ See section 104-30 ]
.......... .
D1 Creating contractual or other rightswhen contract is entered into or right is createdcapital proceeds from creating right less incidental costs of creating itincidental costs of creating right less capital proceeds
[ See section 104-35 ]
.......... .
D2 Granting an optionwhen option is grantedcapital proceeds from grant less expenditure to grant itexpenditure to grant option less capital proceeds
[ See section 104-40 ]
.......... .
D3 Granting a right to income from miningwhen contract is entered into or, if none, when right is grantedcapital proceeds from grant of right less expenditure to grant itexpenditure to grant right less capital proceeds
[ See section 104-45 ]
.......... .
D4 Entering into a conservation covenantwhen covenant is entered intocapital proceeds from covenant less cost base apportioned to the covenantreduced cost base apportioned to the covenant less capital proceeds from covenant
[ See section 104-47 ]
.......... .
E1 Creating a trust over a CGT assetwhen trust is createdcapital proceeds from creating trust less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-55 ]
.......... .
E2 Transferring a CGT asset to a trustwhen asset transferredcapital proceeds from transfer less asset ' s cost baseasset ' s reduced cost base less capital proceeds
[ See section 104-60 ]
.......... .
E3 Converting a trust to a unit trustwhen trust is convertedmarket value of asset at that time less its cost baseasset ' s reduced cost base less that market value
[ See section 104-65 ]
.......... .
E4 Capital payment for trust interestwhen trustee makes paymentnon-assessable part of the payment less cost base of the trust interestno capital loss
[ See section 104-70 ]
.......... .
E5 Beneficiary becoming entitled to a trust assetwhen beneficiary becomes absolutely entitledfor trustee - market value of CGT asset at that time less its cost base; for beneficiary - that market value less cost base of beneficiary ' s capital interestfor trustee - reduced cost base of CGT asset at that time less that market value; for beneficiary - reduced cost base of beneficiary ' s capital interest less that market value
[ See section 104-75 ]
.......... .
E6 Disposal to beneficiary to end income rightthe time of the disposalfor trustee - market value of CGT asset at that time less its cost base; for beneficiary - that market value less cost base of beneficiary ' s right to incomefor trustee - reduced cost base of CGT asset at that time less that market value; for beneficiary - reduced cost base of beneficiary ' s right to income less that market value
[ See section 104-80 ]
.......... .
E7 Disposal to beneficiary to end capital interestthe time of the disposalfor trustee - market value of CGT asset at that time less its cost base; for beneficiary - that market value less cost base of beneficiary ' s capital interestfor trustee - reduced cost base of CGT asset at that time less that market value; for beneficiary - reduced cost base of beneficiary ' s capital interest less that market value
[ See section 104-85 ]
.......... .
E8 Disposal by beneficiary of capital interestwhen disposal contract entered into or, if none, when beneficiary ceases to own CGT assetcapital proceeds less appropriate proportion of the trust ' s net assetsappropriate proportion of the trusts ' s net assets less capital proceeds
[ See section 104-90 ]
.......... .
E9 Creating a trust over future propertywhen entity makes agreementmarket value of the property (as if it existed when agreement made) less incidental costs in making agreementincidental costs in making agreement less market value of the property (as if it existed when agreement made)
[ See section 104-105 ]
.......... .
E10 Annual cost base reduction exceeds cost base of interest in AMITwhen reduction happensexcess of cost base reduction over cost baseno capital loss
[See section 104-107A]
.......... .
F1 Granting a leasefor grant of lease - when entity enters into lease contract or, if none, at start of lease; for lease renewal or extension - at start of renewal or extensioncapital proceeds less expenditure on grant, renewal or extensionexpenditure on grant, renewal or extension less capital proceeds
[ See section 104-110 ]
.......... .
F2 Granting a long term leasefor grant of lease - when lessor grants lease; for lease renewal or extension - at start of renewal or extensioncapital proceeds from grant, renewal or extension less cost base of leased propertyreduced cost base of leased property less capital proceeds from grant, renewal or extension
[ See section 104-115 ]
.......... .
F3 Lessor pays lessee to get lease changedwhen lease term is varied or waivedno capital gainamount of expenditure to get lessee ' s agreement
[ See section 104-120 ]
.......... .
F4 Lessee receives payment for changing leasewhen lease term is varied or waivedcapital proceeds less cost base of leaseno capital loss
[ See section 104-125 ]
.......... .
F5 Lessor receives payment for changing leasewhen lease term is varied or waivedcapital proceeds less expenditure in relation to variation or waiverexpenditure in relation to variation or waiver less capital proceeds
[ See section 104-130 ]
.......... .
G1 Capital payment for shareswhen company pays non-assessable amountpayment less cost base of sharesno capital loss
[ See section 104-135 ]
.......... .
G2 (Repealed by No 90 of 2002)
.......... .
G3 Liquidator or administrator declares shares or financial instruments worthlesswhen declaration was madeno capital gainshares ' or financial instruments ' reduced cost base
[ See section 104-145 ]
.......... .
H1 Forfeiture of a depositwhen deposit is forfeiteddeposit less expenditure in connection with prospective saleexpenditure in connection with prospective sale less deposit
[ See section 104-150 ]
.......... .
H2 Receipt for event relating to a CGT assetwhen act, transaction or event occurredcapital proceeds less incidental costsincidental costs less capital proceeds
[ See section 104-155 ]
.......... .
I1 Individual or company stops being an Australian residentwhen individual or company stops being Australian residentfor each CGT asset the person owns, its market value less its cost basefor each CGT asset the person owns, its reduced cost base less its market value
[ See section 104-160 ]
.......... .
I2 Trust stops being a resident trustwhen trust ceases to be resident trust for CGT purposesfor each CGT asset the trustee owns, its market value of asset less its cost basefor each CGT asset the trustee owns, its reduced cost base less its market value
[ See section 104-170 ]
.......... .
J1 Company stops being member of wholly-owned group after roll-overwhen the company stopsmarket value of asset at time of event less its cost basereduced cost base of asset less that market value
[ See section 104-175 ]
.......... .
J2 Change in relation to replacement asset or improved asset after a roll-over under Subdivision 152-Ewhen the change happensthe amount mentioned in subsection 104-185(5)no capital loss
[ See section 104-185 ]
.......... .
J3 (Repealed by No 55 of 2007 )
.......... .
J4 Trust fails to cease to exist after a roll-over under Subdivision 124-Nwhen the failure happensmarket value of asset less asset ' s cost basereduced cost base of asset less asset ' s market value
[ See section 104-195 ]
.......... .
J5 Failure to acquire replacement asset and to incur fourth element expenditure after a roll-over under Subdivision 152-Eat the end of the replacement asset periodthe amount of the capital gain that you disregarded under Subdivision 152-Eno capital loss
[ See section 104-197 ]
.......... .
J6 Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gainat the end of the replacement asset periodthe amount mentioned in subsection 104-198(3)no capital loss
[ See section 104-198 ]
.......... .
K1 As the result of an incoming international transfer of a Kyoto unit or an Australian carbon credit unit from your foreign account or your nominee ' s foreign account, you start to hold the unit as a registered emissions unit
[See section 104-205]
when you start to hold the unit as a registered emissions unitmarket value of unit less its cost basereduced cost base of unit less its market value
.......... .
K2 Bankrupt pays amount in relation to debtwhen payment is madeno capital gainso much of payment as relates to denied part of a net capital loss
[ See section 104-210 ]
.......... .
K3 Asset passing to tax-advantaged entitywhen individual diesmarket value of asset at death less its cost basereduced cost base of asset less that market value
[ See section 104-215 ]
.......... .
K4 CGT asset starts being trading stockwhen asset starts being trading stockmarket value of asset less its cost basereduced cost base of asset less its market value
[ See section 104-220 ]
.......... .
K5 Special capital loss from collectable that has fallen in market valuewhen CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectableno capital gainmarket value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8
[ See section 104-225 ]
.......... .
K6 Pre-CGT shares or trust interestwhen another CGT event involving the shares or interest happenscapital proceeds from the shares or trust interest (so far as attributable to post-CGT assets owned by the company or trust) less the assets ' cost basesno capital loss
[ See section 104-230 ]
.......... .
K7 Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposesWhen balancing adjustment event occursTermination value less cost times fractionCost less termination value times fraction
[ See section 104-235 ]
.......... .
K8 Direct value shifts affecting your equity or loan interests in a company or trustthe decrease time for the intereststhe gain worked out under section 725-365no capital loss
[ See section 104-250 and Division 725 ]
.......... .
K9 Entitlement to receive payment of a carried interestwhen you become entitled to receive paymentcapital proceeds from entitlementno capital loss
[ See section 104-255 ]
.......... .
K10 You make a forex realisation gain covered by item 1 of the table in subsection 775-70(1)when the forex realisation event happensthe forex realisation gainno capital loss
[ See section 104-260 ]
.......... .
K11 You make a forex realisation loss covered by item 1 of the table in subsection 775-75(1)when the forex realisation event happensno capital gainthe forex realisation loss
[ See section 104-265 ]
.......... .
K12 Foreign hybrid loss exposure adjustmentjust before the end of the income yearno capital gainthe amount stated in subsection 104-270(3)
[ See section 104-270 ]
.......... .
L1 Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group or MEC groupJust after entity becomes subsidiary memberno capital gainamount of reduction
[ See section 104-500 ]
.......... .
L2 Amount remaining after step 3A etc. of joining allocable cost amount is negativeJust after entity becomes subsidiary memberamount remainingno capital loss
[ See section 104-505 ]
.......... .
L3 Tax cost setting amounts for retained cost base assets exceed joining allocable cost amountJust after entity becomes subsidiary memberamount of excessno capital loss
[ See section 104-510 ]
.......... .
L4 No reset cost base assets against which to apply excess of net allocable cost amount on joiningJust after entity becomes subsidiary memberno capital gainamount of excess
[ See section 104-515 ]
.......... .
L5 Amount remaining after step 4 of leaving allocable cost amount is negativeWhen entity ceases to be subsidiary memberamount remainingno capital loss
[ See section 104-520 ]
.......... .
L6 Error in calculation of tax cost setting amount for joining entity ' s assets: CGT event L6start of the income year when the Commissioner becomes aware of the errorsthe net overstated amount resulting from the errors, or a portion of that amountthe net understated amount resulting from the errors, or a portion of that amount
[ See section 104-525 ]
.......... .
L7 (Repealed by No 56 of 2010)
.......... .
L8 Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocatedJust after entity becomes subsidiary memberno capital gainamount of reduction that cannot be allocated
[ See section 104-535 ]

Note:

Subsection 230-310(4) (which deals with hedging financial arrangements) provides that in certain circumstances a CGT event is taken to have occurred in relation to a hedging financial arrangement at the same time as a CGT event actually occurs in relation to a hedged item covered by the arrangement.


 



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