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 104-107B   Annual cost base adjustment for member ' s unit or interest in AMIT  

104-107B(1)    
This section applies if 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.

104-107B(2)    
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 base of the asset - reduce the cost base and *reduced cost base of the asset to nil; or

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

Note:

If that AMIT cost base net amount exceeds the cost base of the asset, CGT event E10 will happen (see section 104-107A ).

104-107B(3)    
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 base and *reduced cost base of the asset by that AMIT cost base net amount.

104-107B(4)    
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.