Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 723 - Direct value shifting by creating right over non-depreciating asset  

Subdivision 723-A - Reduction in loss from realising non-depreciating asset  

SECTION 723-25   Realisation event that is only a partial realisation  

723-25(1)    
Section 723-10 or 723-15 applies differently if:

(a)    a ^* realisation event happens to some part of a ^* CGT asset (the underlying asset ) you own that, at the time of the event:

(i) is not a ^* depreciating asset; or

(ii) is an item of your ^* trading stock; or

(iii) is a ^* revenue asset of yours;

but not to the remainder of the underlying asset; or

(b)    a realisation event consists of creating an interest in a CGT asset (also the underlying asset ) you own that, at the time of the event, is covered by subparagraph (a)(i) , (ii) or (iii) .

723-25(2)    

The section applies on the basis that:

(a)    the ^* realisation event happens to the underlying asset; and

(b)    the shortfall on creating the right referred to in paragraph 723-10(1)(e) or 723-15(1)(c) ; and

(c)    the deficit on realisation referred to in paragraph 723-10(1)(g) or 723-15(1)(e) ;

are each reduced by multiplying its amount by this fraction:

* Market value of part                   * Market value of underlying asset

723-25(3)    

For the purposes of the formula in subsection (2) :

market value of part
means the * market value, at the time of the ^* realisation event, of the part referred to in paragraph (1)(a) or the interest referred to in paragraph (1)(b) , as appropriate.

market value of underlying asset
means the * market value, immediately before the ^* realisation event, of the underlying asset.