Income Tax Assessment Act 1997
CHAPTER 3 - SPECIALIST LIABILITY RULES
PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS
View history note
Hide history noteSubdivision 104-K - Other CGT events
SECTION 104-210 Bankrupt pays amount in relation to debt: CGT event K2
104-210(1)
CGT event K2
happens if:
(a)
you made a *net capital loss for an income year that, because of subsection
102-5(2)
, cannot be applied in working out whether you made a *net capital gain for the income year or a later one; and
(b)
you make a payment in an income year (the
payment year
) in respect of a debt that was taken into account in working out the amount of that net capital loss; and
(c)
ignoring subsection
102-5(2)
, some part of the net capital loss (the
denied part
) would have been applied (if you had made sufficient *capital gains) in working out whether you had made a *net capital gain for the payment year.
The payment can include giving property: see section 103-5 .
104-210(2)
The time of the event is when you make the payment.
104-210(3)
You make a
capital loss
equal to the smallest of:
(b)
that part of it that was taken into account in working out the denied part; or
(c)
the denied part less the sum of *capital losses you made as a result of previous payments you made in respect of the debt that was taken into account in working out the denied part.
104-210(4)
In calculating that
capital loss
, disregard any amount you have received as *recoupment of the payment and that is not included in your assessable income.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
