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-C - End of a CGT asset  

SECTION 104-20   Loss or destruction of a CGT asset: CGT event C1  

104-20(1)    
CGT event C1 happens if a * CGT asset you own is lost or destroyed.

Note:

This event can apply to part of a CGT asset: see section 108-5 (definition of CGT asset ).

104-20(2)    
The time of the event is:

(a) when you first receive compensation for the loss or destruction; or

(b) if you receive no compensation - when the loss is discovered or the destruction occurred.

104-20(3)    

You make a capital gain if the * capital proceeds from the loss or destruction 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.

Exception

104-20(4)    
A * capital gain or * capital loss you make is disregarded if you * acquired the asset before 20 September 1985.