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 104-107G   Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset - adjustment of cost of asset  

104-107G(1)    
This section applies 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) the CGT asset is a *revenue asset; and

(c) the CGT asset is not a *Division 230 financial arrangement.

104-107G(2)    
Make the adjustments in subsection (3) for the purposes of working out an amount included in your assessable income (or working out an amount treated as a deduction) under any of these provisions:

(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), 15-15 and 25-40 (about profit-making undertakings or plans);

(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).

104-107G(3)    
If the *CGT asset ' s *AMIT cost base net amount for the income year is the excess mentioned in paragraph 104-107C(a) :

(a) in a case where that AMIT cost base net amount exceeds the cost of the asset - reduce the cost of the asset to nil; or

(b) otherwise - reduce the cost of the asset by that AMIT cost base net amount.

Note:

If the AMIT cost base net amount exceeds the cost of the asset, see section 104-107H .

104-107G(4)    
If the *CGT asset ' s *AMIT cost base net amount for the income year is the shortfall mentioned in paragraph 104-107C(b) , increase the cost of the asset by that AMIT cost base net amount.

104-107G(5)    
The time of the reduction or increase is:

(a) unless paragraph (b) applies - just before the end of the income year; or

(b) if a *CGT event happens to the *CGT asset at a time when you hold it before the end of the income year - just before the time of that CGT event.

104-107G(6)    
For the purposes of this section and section 104-107H , in working out the *CGT asset ' s *AMIT cost base net amount for the income year, disregard any right that you start to have in the income year if:

(a) the right is for you to receive any money or any property from the trustee of the *AMIT; and

(b) the right is remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person.

104-107G(7)    
For the purposes of section 118-20 , treat this section as being outside of this Part.

Note:

Section 118-20 deals with reducing capital gains if an amount is otherwise assessable.