Income Tax Assessment Act 1997

Under the realisation time method:

• losses on realisation of affected interests in the losing entity are reduced; and

• gains on realisation of affected interests in the gaining entity are reduced, within limits worked out by reference to the reductions in losses on affected interests in the losing entity; and

• certain 95% services indirect value shifts are disregarded.

This Subdivision also explains how its reduction of a loss or gain affects CGT assets, trading stock and revenue assets.