Tax Law Improvement Act (No. 1) 1998 (46 of 1998)

Cost of item acquired for no consideration

Item

In this case:

The cost is:

1

you acquired the item during or after the 1998-99 income year, and the acquisition involved a *CGT event

the item's market value when you last acquired it

2

you acquired the item before or during the 1997-98 income year, and the acquisition involved a disposal of the item to you within the meaning of Part IIIA (Capital gains and capital losses) of the Income Tax Assessment Act 1936

the item's market value when you last acquired it

3

your acquisition of the item involved the item:

(a) devolving to you as someone's *legal personal representative; or

(b) *passing to you as a beneficiary in someone's estate;

and, if a *CGT event had happened in relation to the item just before you started holding it as *trading stock, a *capital gain or *capital loss could have resulted that would have been taken into account in working out your *net capital gain or *net capital loss for the income year of the event

(a) if the person died during or after his or her 1998-99 income year - the dead person's *cost base for the item just before his or her death; or

(b) if the person died before or during his or her 1997-98 income year - the dead person's indexed cost base (within the meaning of Part IIIA (Capital gains and capital losses) of the Income Tax Assessment Act 1936) for the item just before his or her death (but worked out disregarding section 160ZG (which affects the indexed cost base for a non-listed personal use asset) of that Act)

4

any other case where you last acquired the item for no consideration

a nil amount