INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZN   APPLICATION TO JOINT OWNERS  

160ZN(1)   [Effect of assets being owned by joint tenants]  

Subject to subsection (2), where an asset is owned by persons as joint tenants:

(a) this Part applies as if those persons owned the asset as tenants in common in equal shares;

(b) if one of the joint tenants dies and the interest of the deceased person in the asset was acquired by the deceased person before 20 September 1985 - the interest of the deceased person in the asset shall be deemed, for the purposes of this Part, to have been acquired by the survivor, or if there are 2 or more survivors, by those survivors in equal shares, on the date of the deceased person's death and to have been so acquired for a consideration equal to the market value of the interest at the date of the deceased person's death;

(c) if one of the joint tenants dies and the interest of the deceased person in the asset was acquired by the deceased person on or after 20 September 1985 - the interest of the deceased person in the asset shall be deemed, for the purposes of this Part, to have been acquired by the survivor or, if there are 2 or more survivors, by those survivors in equal shares, on the date of the deceased person's death and the interest so acquired by a surviving joint tenant shall be deemed to have been acquired -

(i) for the purpose of ascertaining whether a capital gain accrued to the survivor in the event of a subsequent disposal of the interest by the survivor - for a consideration equal to the amount that would have been the indexed cost base to the deceased person of the interest for the purposes of this Part if the deceased person had disposed of the interest immediately before his or her death; or

(ii) for the purpose of ascertaining whether the survivor incurred a capital loss in the event of a subsequent disposal of the interest by the survivor - for a consideration equal to the amount that would have been the reduced cost base to the deceased person of the interest for the purposes of this Part if the deceased person had disposed of the interest immediately before his or her death; and

(d) if, in the case of an interest to which subparagraph (1)(c)(i) applies, the interest was disposed of by the survivor within 12 months after the day on which the interest was acquired by the deceased person, the reference in that subparagraph to the indexed cost base to the deceased person of the interest shall be construed as a reference to the cost base to the deceased person of the interest.

160ZN(2)   [Trustees]  

Except where the contrary intention appears, this Part applies in relation to two or more persons who own an asset in the capacity of trustees of the one trust estate as if those persons were a single person.