Draft Taxation Determination
TD 1999/D55
Income tax: capital gains: is roll-over available under Subdivision 124-B of the Income tax Assessment Act 1997 for the loss or destruction of a CGT asset if an asset is damaged?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 2000/38.
FOI status:
draft only - for commentPreamble
| Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. No. Loss or destruction does not include damage. Subdivision 124-B of the Income Tax Assessment Act 1997 does not apply to a damaged CGT asset unless the damage done to the asset is so extensive that the asset or a discrete part of the asset can be considered lost or destroyed.
Example 1:
2. The keel of a yacht is destroyed. The yacht is damaged, though not destroyed. However, the keel, as a discrete part of the yacht, is destroyed and roll-over is available.
Example 2:
3. A holiday home is totally reduced to rubble as a result of a tropical cyclone. Roll-over is available for the destruction of the home. However, if only part of the house is damaged during the cyclone, roll-over is not available because the house has not been destroyed.
Your comments
We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.
| Comments by Date: | 1 September 1999 |
| Contact officer details have been removed following publication of the final ruling. | |
Commissioner of Taxation
4 August 1999
References
ATO references:
NO 99/10859-2
BO CGT Involuntary Disposal summit 1999
Subject References:
Asset
CGT asset
damage
destruction
loss
roll-over
Legislative References:
ITAA 1997 Subdivision 124-B