Income Tax Assessment Act 1997



Division 118 - Exemptions  

Subdivision 118-A - General exemptions  

Exempt or loss-denying transactions

SECTION 118-60   Certain gifts  


A *capital gain or *capital loss made from a testamentary gift of property that would have been deductible under section 30-15 if it had not been a testamentary gift is disregarded.


If the only reason the gain or loss is not disregarded under subsection (1) is because the property has not been valued by the Commissioner at more than $5,000, then, for the purposes of that subsection, it is taken to have been so valued.


A *capital gain or *capital loss made from a gift of property that is deductible under section 30-15 because of item 4 or 5 in the table in that section is disregarded.


However, subsection (2) does not apply if the gift was not a testamentary gift and the property is later *acquired for less than *market value by the person who made the gift or an *associate of that person.


If the gift was a testamentary gift and the property is later *acquired for less than *market value by the deceased person ' s estate or a person (the deceased ' s associate ) who:

(a) is an *associate of the deceased person ' s estate; or

(b) was an associate of the deceased person immediately before the deceased person ' s death;

the *cost base and the *reduced cost base of the property in the hands of the estate or the deceased ' s associate is worked out under section 128-15 as if the property had passed in the estate to the estate or the deceased ' s associate.


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