Taxation Determination

TD 93/180

Income tax: capital gains: how is the removal of a building from a block of land that does not amount to a loss or destruction, treated for CGT purposes ?

  • Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

FOI status:

may be releasedFOI number: I 1216114

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

[ Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]

1. The removal of a building from a block of land does not result in any CGT event happening. Rather, the original asset has been split into two separate assets (the land and the building).

2. In the event of a subsequent separate disposal of the land and building, the respective cost bases are determined in accordance with section 112-25 of the Income Tax Assessment Act 1997. That is, where the original asset was acquired post-CGT, its cost base immediately before the removal is apportioned between the split assets.

Commissioner of Taxation
9/9/93

Previously issued as Draft TD 93/D75

References

ATO references:
NO TD/92/0026/PAR (CGTDET 58)

ISSN 1038 - 3158

Related Rulings/Determinations:

TD 7
TD 93/181
TD 93/182
TD 93/183
TD 93/184

Subject References:
CGT cost base modification apportionment rule
CGT events

Legislative References:
ITAA 1997 112-25

TD 93/180 history
  Date: Version: Change:
  9 September 1993 Original ruling  
  29 November 2006 Original ruling + note Repeal provision note
You are here 21 April 2010 Consolidated ruling Addendum

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