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-E - Trusts  

SECTION 104-107A   AMIT - cost base reduction exceeds cost base: CGT event E10  

104-107A(1)    
CGT event E10 happens if:

(a) you are a *member of an *AMIT in respect of an income year because you have a *CGT asset that is your unit or your interest in the AMIT; and

(b) either:

(i) the *cost base of that asset is reduced under subsection 104-107B(2) during the income year; or

(ii) the cost base of that asset is nil at the start of the income year; and

(c) the asset ' s *AMIT cost base net amount for the income year is the excess mentioned in paragraph 104-107C(a) ; and

(d) the asset ' s AMIT cost base net amount for the income year exceeds the cost base of the asset.

104-107A(2)    

The time of the event is:

(a) if subparagraph (1)(b)(i) applies - the time at which the reduction occurs under section 104-107B ; or

(b) if subparagraph (1)(b)(ii) applies - the time at which the *cost base would have been reduced under subsection 104-107B(2) during the income year if the cost base had been greater than nil at the start of the income year.

104-107A(3)    

You make a capital gain equal to:

(a) if the *cost base of the asset is nil - the excess mentioned in paragraph 104-107C(a) ; or

(b) if the cost base of the asset is not nil - the excess mentioned in paragraph (1)(d) of this section.

Note 1:

If you make a capital gain, the cost base and reduced cost base of the CGT asset are reduced to nil (see paragraph 104-107B(2)(a) ).

Note 2:

You cannot make a capital loss.

Exceptions

104-107A(4)    
A *capital gain you make from *CGT event E10 is disregarded if you *acquired the *CGT asset that is the unit or interest before 20 September 1985.