Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 112 - Modifications to cost base and reduced cost base  

Subdivision 112-B - Special rules  

SECTION 112-100   Effect of terminated gold mining exemptions  

112-100(1)    
This section affects how to work out a capital gain or capital loss you make from a CGT event that happens to a CGT asset after 31 December 1990 if:

(a) before 1 January 1991, you used the asset (other than on a prior holding of it) solely for the purpose of producing exempt income, and principally for the purpose of producing exempt income to which former paragraph 23(o) or former subsection 23C(1) of the Income Tax Assessment Act 1936 (about income from producing or selling gold) applied; and

(b) you owned the asset continuously from the end of 31 December 1990 until the CGT event.

Capital gain

112-100(2)    
For the purposes of working out a capital gain you make from the CGT event, if the asset's market value at the end of 31 December 1990 was more than its cost base at that time, the first element of its cost base at that time is that market value.

Capital loss

112-100(3)    
The rest of this section has effect for the purposes of working out a capital loss you make from the CGT event.

112-100(4)    
If the asset's market value at the end of 31 December 1990 was less than its reduced cost base at that time, the first element of its reduced cost base at that time is that market value.

112-100(5)    
In applying section 110-55 of the Income Tax Assessment Act 1997 (about reduced cost base):

(a) treat your notional deductions (within the meaning of Subdivision B or C of former Division 16H of Part III of the Income Tax Assessment Act 1936 ) as amounts you have deducted; and

(b) disregard the effect of former sections 159GZZO and 159GZZZ of that Act.