INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
View history note
Hide history noteThis section sets out an example of how this Part will work in a typical case involving the acquisition and disposal of an asset by a taxpayer. The taxpayer acquired the asset on 29 September 1985 for a cost of $100,000 and disposed of the asset on 29 September 1991 for $300,000. The cost base is $100,000. The indexed cost base is calculated as follows:
| $149,600
indexed cost base |
= | $100,000
(cost base) |
× | 215.7
(index number for
September 1991 quarter) 144.2 (index number for September 1985 quarter) |
(The fraction on the right is rounded up to 1.496.)
160AZ(2) Capital gain on disposal.There is a capital gain on disposal of the asset.
160AZ(3) Calculation of net capital gain.
Assuming that the taxpayer has no capital losses, the net capital gain is $150,400.
160AZ(4) Inclusion of net capital gain in assessable income under section 160ZO.The taxpayer's assessable income includes $150,400.
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