Taxation Laws Amendment Act (No. 5) 2002 (119 of 2002)

Schedule 3   Capital allowances

Income Tax Assessment Act 1997

67   Section 118-24

Repeal the section, substitute:

(1) A *capital gain or *capital loss you make from a *CGT event (that is also a *balancing adjustment event) that happens to a *depreciating asset or a section 73BA depreciating asset (within the meaning of section 73BB of the Income Tax Assessment Act 1936) is disregarded if the asset was:

(a) an asset you *held; or

(b) if you are a partner, an asset of the partnership; or

(c) if you are absolutely entitled to the asset as against the trustee of a trust (disregarding any legal disability), an asset of the trustee;

where the decline in value of the asset was worked out under Division 40, or the deduction for the asset was calculated under Division 328, or would have been if the asset had been used.

(2) However, subsection (1) does not apply to:

(a) a *capital gain or *capital loss you make from *CGT event J2 or *CGT event K7 happening; or

(b) a *depreciating asset for which you or another entity has deducted or can deduct amounts under Subdivision 40-F or 40-G.