Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-E - Trusts  

SECTION 104-107B   Annual cost base adjustment for member ' s unit or interest in AMIT  

104-107B(1)  
This section applies if you are a *member of an *AMIT in respect of an income year because you have a *CGT asset that is your unit or your interest in the AMIT.

104-107B(2)  
If the *CGT asset ' s *AMIT cost base net amount for the income year is the excess mentioned in paragraph 104-107C(a) :


(a) in a case where that AMIT cost base net amount exceeds the *cost base of the asset - reduce the cost base and *reduced cost base of the asset to nil; or


(b) otherwise - reduce the cost base and reduced cost base of the asset by that AMIT cost base net amount.

Note:

If that AMIT cost base net amount exceeds the cost base of the asset, CGT event E10 will happen (see section 104-107A ).

104-107B(3)  
If the *CGT asset ' s *AMIT cost base net amount for the income year is the shortfall mentioned in paragraph 104-107C(b) , increase the *cost base and *reduced cost base of the asset by that AMIT cost base net amount.

104-107B(4)  
The time of the reduction or increase is:


(a) unless paragraph (b) applies - just before the end of the income year; or


(b) if a *CGT event happens to the *CGT asset at a time when you hold it before the end of the income year - just before the time of that CGT event.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.