Income Tax Assessment Act 1997
Use the table in subsection (2) of this section to work out on a loss-focussed basis the amount (if any) by which the interest ' s * adjustable value is reduced. 727-780(2)
This involves comparing the old * market value, and the notional resulting market value, with the interest ' s * adjustable value (the old adjustable value ) immediately before the * IVS time.
|Reduction under the attributable decrease method|
|Item||If the old market value:||And the notional resulting market value:||This is the result:|
|1||is greater than or equal to the old adjustable value||is less than the old adjustable value||the *adjustable value is reduced to the notional resulting market value|
|2||is greater than or equal to the old adjustable value||is greater than or equal to the old adjustable value||the *adjustable value is not reduced because of the *indirect value shift|
|3||is less than the old adjustable value||is less than the old adjustable value||the *adjustable value is reduced by the amount of the *disaggregated attributable decrease|
Because of item 1, the indirect value shift cannot cause a loss to arise on disposal of the interest.
Because of item 3 the loss already embedded in the interest is preserved, but the indirect value shift does not increase it.
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