Income Tax Assessment Act 1997
View history note
Hide history noteCGT event B1 happens if you enter into an agreement with another entity under which:
(a) the right to the use and enjoyment of a *CGT asset you own passes to the other entity; and
(b) title in the asset will or may pass to the other entity at or before the end of the agreement.
Note:
Division 240 provides for the inclusion of amounts under hire purchase agreements in assessable income.
104-15(2)
The time of the event is when the other entity first obtains the use and enjoyment of the asset.
104-15(3)
You make a capital gain if the *capital proceeds from the agreement are more than the asset ' s *cost base. You make a capital loss if those capital proceeds are less than the asset ' s *reduced cost base.
Exceptions
104-15(4)
A *capital gain or *capital loss you make is disregarded if:
(a) title in the asset does not pass to the other entity at or before the end of the agreement; or
(b) you *acquired the asset before 20 September 1985.
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