INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 118 - Exemptions  

Subdivision 118-A - General exemptions  

Anti-overlap provisions

SECTION 118-24   Depreciating assets  

118-24(1)  

A *capital gain or *capital loss you make from a *CGT event (that is also a *balancing adjustment event) that happens to a *depreciating asset is disregarded if the asset was:

(a) an asset you *held; or

(b) if you are a partner, an asset of the partnership; or

(c) if you are absolutely entitled to the asset as against the trustee of a trust (disregarding any legal disability), an asset of the trustee;

where the decline in value of the asset was worked out under Division 40 (including that Division as it applies under Division 355 ), or the deduction for the asset was calculated under Division 328 , or would have been if the asset had been used.

118-24(2)  
However, subsection (1) does not apply to:

(a) a *capital gain or *capital loss you make from *CGT event J2 or *CGT event K7 happening; or

(b) a *depreciating asset for which you or another entity has deducted or can deduct amounts under Subdivision 40-F or 40-G .