INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 4 - Treatment of gains and losses  

SECTION 160ZQ   TREATMENT OF GAINS AND LOSSES IN RESPECT OF LISTED PERSONAL-USE ASSETS  

160ZQ(1)   [Consequences of disposal]  

Subject to subsection (2), where a listed 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 listed personal-use asset gain equal to the excess shall be deemed for the purposes of this section to have accrued to the taxpayer during the year of income; or


(b) if the reduced cost base to the taxpayer in respect of the asset exceed the consideration in respect of the disposal - a listed personal-use asset loss equal to the excess shall be deemed for the purposes of this section to have been incurred by the taxpayer during the year of income.

160ZQ(2)   [Disposal within 12 months of acquisition]  

If the disposal occurred within 12 months after the day on which the asset was acquired by the taxpayer, the reference in subsection (1) 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.

160ZQ(3)   [Date of acquisition of asset of deceased estate]  

The reference in subsection (2) to the day on which an asset was acquired by a 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, be construed as a reference to the day on which the asset was acquired by the deceased person.

160ZQ(4)   [Disposal consideration increased by sec 160ZD(5)]  

Where:


(a) the amount that is deemed for the purposes of this Part to be the consideration in respect of a disposal of an asset is increased because of the operation of subsection 160ZD(5) ;


(b) the amount of the increase (in this subsection referred to as the ``relevant increase'' ) was attributable in whole or in part to a decrease in the market value of a listed personal-use asset; and


(c) as a result of the relevant increase:


(i) a capital gain that would not otherwise have accrued to a taxpayer accrued to the taxpayer during a year of income;

(ii) the amount of a capital gain that accrued to a taxpayer during a year of income is greater than it would otherwise have been;

(iii) a taxpayer has not incurred during a year of income a capital loss that the taxpayer would otherwise have incurred; or

(iv) the amount of a capital loss that a taxpayer incurred during a year of income is less than it would otherwise have been,

the taxpayer shall be deemed to have incurred, during the year of income referred to in whichever of the subparagraphs of paragraph (c) is applicable, a listed personal-use asset loss equal to so much of the relevant increase as was attributable to the decrease in the market value of the listed personal-use asset.

160ZQ(5)   [Circumstances in which net listed personal-use asset loss incurred]  

For the purposes of this section, a net listed personal-use asset loss shall be taken to have been incurred by a taxpayer in respect of the year of income if:


(a) where no listed personal-use asset gain accrued to the taxpayer during the year of income - the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income or incurred a net listed personal-use asset loss in respect of the immediately preceding year of income; or


(b) where a listed personal-use asset gain or listed personal-use asset gains accrued to the taxpayer during the year of income:


(i) if the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income but did not incur a net listed personal-use asset loss in respect of the immediately preceding year of income - that listed personal-use asset loss or the sum of those listed personal-use asset losses;

(ii) if the taxpayer did not incur a listed personal-use asset loss during the year of income but incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - that net listed personal-use asset loss; or

(iii) if the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income and incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - the sum of that listed personal-use asset loss or those listed personal-use asset losses and that net listed personal-use asset loss,
exceeded the listed personal-use asset gain or the sum of the listed personal-use asset gains that accrued to the taxpayer during the year of income.

160ZQ(6)   [Amount of net listed personal-use asset loss]  

The amount of the net listed personal-use asset loss that, by virtue of subsection (5), is to be taken for the purposes of this section to have been incurred by a taxpayer in respect of the year of income is an amount equal to:


(a) in a case to which paragraph (5)(a) applies:


(i) if the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income and did not incur a net listed personal-use asset loss in respect of the immediately preceding year of income - that listed personal-use asset loss or the sum of those listed personal-use asset losses;

(ii) if the taxpayer did not incur a listed personal-use asset loss during the year of income but incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - that net listed personal-use asset loss; or

(iii) if the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income and incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - the sum of that listed personal-use asset loss or those listed personal-use asset losses and that net listed personal-use asset loss; or


(b) in a case to which paragraph (5)(b) applies - the excess referred to in that paragraph.

160ZQ(6A)   [Reduced loss under commercial debt forgiveness provisions]  

If, apart from sections 245-125 to 245-135 in Schedule 2C, a taxpayer would be taken to have incurred a net listed personal-use asset loss in the immediately preceding year of income, then, for the purposes of this section:


(a) if the effect of those sections is to reduce the amount of the loss to nil - the taxpayer is taken not to have incurred a net listed personal-use asset loss in that year of income; or


(b) if the effect of those sections is to reduce the amount of the loss to an amount greater than nil - the amount of the net listed personal-use asset loss incurred by the taxpayer in that year of income is taken to be the reduced amount.

160ZQ(7)   [Listed personal-use asset gain but no loss]  

For the purposes of this Part, where:


(a) a listed personal-use asset gain or listed personal-use asset gains accrued to the taxpayer during the year of income; and


(b) the taxpayer did not incur a listed personal-use asset loss during the year of income and did not incur a net listed personal-use asset loss in respect of the immediately preceding year of income,

a capital gain equal to the amount of the listed personal-use asset gain or the sum of the listed personal-use asset gains shall be taken for the purposes of this Part to have accrued to the taxpayer during the year of income.

160ZQ(8)   [Listed personal-use asset gain and loss]  

For the purposes of this Part, where:


(a) a listed personal-use asset gain or listed personal-use asset gains accrued to the taxpayer during the year of income;


(b) the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income or incurred a net listed personal-use asset loss in respect of the immediately preceding year of income; and


(c) that listed personal-use asset gain or the sum of those listed personal-use asset gains exceeded:


(i) where the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income but did not incur a net listed personal-use asset loss in respect of the immediately preceding year of income - that listed personal-use asset loss or the sum of those listed personal-use asset losses;

(ii) where the taxpayer did not incur a listed personal-use asset loss during the year of income but incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - that net listed personal-use asset loss; or

(iii) where the taxpayer incurred a listed personal-use asset loss or listed personal-use asset losses during the year of income and incurred a net listed personal-use asset loss in respect of the immediately preceding year of income - the sum of that listed personal-use asset loss or those listed personal-use asset losses and that net listed personal-use asset loss,

a capital gain equal to the excess referred to in paragraph (c) shall be taken for the purposes of this Part to have accrued to the taxpayer during the year of income.


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