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-K - Other CGT events  

SECTION 104-250   Direct value shifts: CGT event K8  

104-250(1)    
CGT event K8 happens if there is a *taxing event generating a gain for a *down interest under section 725-245 .

Note:

That section sets out some of the CGT consequences of a direct value shift for affected owners of down interests. See also the rest of Division 725 .

104-250(2)    
The time of the event is the *decrease time for the *down interest.

104-250(3)    
You make a capital gain equal to the gain generated for the taxing event.

Note:

You cannot make a capital loss.

104-250(4)    
If, because of the same *direct value shift, there are 2 or more *taxing events generating a gain that are covered by subsection (1), CGT event K8 happens for each of those taxing events, and you make a separate capital gain for each.

Exceptions

104-250(5)    
A *capital gain is disregarded if the *down interest is a *pre-CGT asset.