Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-A - General exemptions  

Exempt or loss-denying transactions

SECTION 118-60   Certain gifts  

118-60(1)    

A *capital gain or *capital loss made from a testamentary gift of property that would have been deductible under section 30-15 if it had not been a testamentary gift is disregarded.

118-60(1A)    

If the only reason the gain or loss is not disregarded under subsection (1) is because the property has not been valued by the Commissioner at more than $5,000, then, for the purposes of that subsection, it is taken to have been so valued.

118-60(2)    

A *capital gain or *capital loss made from a gift of property that is deductible under section 30-15 because of item 4 or 5 in the table in that section is disregarded.

118-60(3)    

However, subsection (2) does not apply if the gift was not a testamentary gift and the property is later *acquired for less than *market value by the person who made the gift or an *associate of that person.

118-60(4)    

If the gift was a testamentary gift and the property is later *acquired for less than *market value by the deceased person ' s estate or a person (the deceased ' s associate ) who:

(a) is an *associate of the deceased person ' s estate; or

(b) was an associate of the deceased person immediately before the deceased person ' s death;

the *cost base and the *reduced cost base of the property in the hands of the estate or the deceased ' s associate is worked out under section 128-15 as if the property had passed in the estate to the estate or the deceased ' s associate.