Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 116 - Capital proceeds  

Special rules  

SECTION 116-80   Special rule if CGT asset is shares or an interest in a trust  

116-80(1)  
This section sets out what happens if:

(a) there is a fall in the *market value of a *personal use asset (other than a car, motor cycle or similar vehicle) or a *collectable of a company or trust; and

(b) *CGT event A1, C2 or E8 happens to:

(i) *shares you own in the company (or in a company that is a member of the same *wholly-owned group); or

(ii) an interest you have in the trust.

Note:

The full list of CGT events is in section 104-5 .

116-80(2)  

The *capital proceeds from the event are replaced with the *market value of the *shares, or the interest in the trust.

The market value is worked out as at the time of the event as if the fall in market value of the *personal use asset or *collectable had not occurred.

Note:

You may also make a collectable loss: see CGT event K5.