INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160Z   CAPITAL GAINS AND CAPITAL LOSSES  

160Z(1)   [Amount of capital gain]  

Subject to this Part, where an asset other than a personal-use asset has been disposed of during the year of income:


(a) if the consideration in respect of the disposal exceeds the indexed cost base to the taxpayer in respect of the asset - a capital gain equal to the excess shall be deemed for the purposes of this Part to have accrued to the taxpayer during the year of income and to have so accrued at the time of the disposal; or


(b) if the reduced cost base to the taxpayer in respect of the asset exceeds the consideration in respect of the disposal - a capital loss equal to the excess (less any amount by which that loss is reduced under subparagraph 245-90(2)(b)(i) of Schedule 2C). shall be deemed for the purposes of this Part to have been incurred by the taxpayer during the year of income and to have been so incurred at the time of the disposal.

Note:

The amount of a capital loss referred to in paragraph (1)(b) may be reduced under subsection 160ZZPR(2) or 160ZZPS (2).

160Z(2)   [Capital gain - non-listed personal-use asset]  

Subject to subsection (3), where:


(a) a non-listed personal-use asset has been disposed of during the year of income; and


(b) the consideration in respect of the disposal exceeds the indexed cost base to the taxpayer in respect of the asset;

a capital gain equal to the excess shall be deemed for the purposes of this Part to have accrued to the taxpayer during the year of income.

160Z(3)   [Disposal within 12 months of acquisition]  

If the disposal of an asset referred to in subsection (1) or (2) occurred within 12 months after the day on which the asset was acquired by the taxpayer, the reference in the subsection concerned to the indexed cost base to the taxpayer in respect of the asset shall be construed as a reference to the cost base to the taxpayer in respect of the asset.

160Z(4)   [Date of acquisition of asset of deceased]  

The reference in subsection (3) to the day on which an asset was acquired by the taxpayer shall, if the asset formed part of the estate of a deceased person and passed to the taxpayer as the legal personal representative of the deceased person or as a beneficiary in the estate of the deceased person, or if the asset is an interest that was deemed to be acquired by a surviving joint tenant by virtue of section 160ZN , be construed as a reference to the day on which the asset was acquired by the deceased person.

160Z(5)   [Date of acquisition - deemed acquisition]  

The reference in subsection (3) to the day on which an asset was acquired by the taxpayer shall, if the asset was deemed to be acquired by the taxpayer by virtue of subsection 160ZL(2) or (3) , subsection 160ZM(2) or 160ZT (1A), paragraph 160ZZOA(1)(e) , subsection 160ZZRDJ(3) or (4) , 160ZZRDM(2) or (5) , or 160ZZRE(3) or (4) or by virtue of subparagraph 160ZZD(4)(a)(i) or (5)(a)(i) (including the subparagraph concerned as it applies by virtue of subsection 160ZZD(6) ), be construed as a reference to the day on which the asset was (apart from the subsection, paragraph or subparagraph concerned) acquired by the taxpayer.

160Z(6)   [Asset solely used to produce eligible exempt income]  

Nothing in this Part operates to deem a capital gain to have accrued to a taxpayer during the year of income where the relevant disposal related to an asset that was used by the taxpayer solely for the purpose of producing eligible exempt income.

160Z(6A)   [Firearms surrender arrangements]  

Nothing in this Part operates to deem a capital gain to have accrued to a taxpayer during the year of income where the relevant disposal related to an asset for which the taxpayer received consideration under firearms surrender arrangements.

Note:

Firearms surrender arrangements has the meaning given by subsection 6(1) .

160Z(7)   [Capital loss - personal-use asset]  

Nothing in this Part operates to deem a capital loss to have been incurred in respect of the disposal of a personal-use asset but this subsection does not preclude a listed personal-use asset loss from being taken into account in accordance with section 160ZQ .

160Z(8)   [Exempt taxpayer]  

A capital gain shall not be deemed for the purposes of this Part to have accrued to a taxpayer during the year of income if the taxpayer is a person whose income of the year of income is exempt from tax by virtue of a relevant exempting provision.

160Z(9)   [No capital loss]  

A capital loss shall not be deemed for the purposes of this Part to have been incurred by a taxpayer during the year of income where:


(a) the taxpayer is a person whose income of the year of income is exempt from tax by virtue of a relevant exempting provision; or


(b) (Repealed by No 147 of 1997)


(c) the relevant disposal related to an asset that was used by the taxpayer solely for the purpose of producing eligible exempt income; or


(d) the relevant disposal was the expiry, surrender, forfeiture or assignment of a lease or sub-lease (other than a lease or sub-lease that was granted in perpetuity or for a period of not less than 99 years) that was not used by the lessee or sub-lessee wholly or principally for gaining or producing assessable income.

160Z(9A)  

160Z(10)   [``eligible exempt income'']  

In this section:

"eligible exempt income"
means exempt income other than income to which section 23AH , 23AI , 23AJ or 23AK , paragraph 99B(2)(d) or (e) or section 128D applies.


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