Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 118
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Exemptions
Subdivision 118-I
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Look-through earnout rights
SECTION 118-580
Temporarily disregard capital losses affected by look-through earnout rights
118-580(1)
Temporarily disregard a portion of a * capital loss you make from * disposing of a * CGT asset if the capital loss could be reduced by you receiving one or more * financial benefits under a * look-through earnout right relating to the CGT asset and the disposal.
118-580(2)
The portion of the * capital loss that is temporarily disregarded is:
(a) if those * financial benefits can never exceed a maximum amount that is certain - so much of the capital loss as is equal to that maximum amount; or
(b) otherwise - all of the capital loss.(a) you cease to disregard under this section a portion of your loss related to the amount of that financial benefit; and
(b) your capital proceeds for the disposal increase (see paragraph
116-120(1)(b)
), causing a reduction in the amount of your loss.
View history note
Hide history noteTemporarily disregard a portion of a * capital loss you make from * disposing of a * CGT asset if the capital loss could be reduced by you receiving one or more * financial benefits under a * look-through earnout right relating to the CGT asset and the disposal.
118-580(2)
The portion of the * capital loss that is temporarily disregarded is:
(a) if those * financial benefits can never exceed a maximum amount that is certain - so much of the capital loss as is equal to that maximum amount; or
(b) otherwise - all of the capital loss.
Note:
When you receive a financial benefit under the look-through earnout right:
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