Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 102.30

Exceptions and modifications

                   Provisions of this Act are in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .

 

Special rules affecting capital gains and capital losses


Item

For this kind of entity:


There are these special rules:


See:

1

All entities

You can subtract capital losses from collectables only from your capital gains from collectables.

section 108-10

2

All entities

Disregard capital losses you make from personal use assets.

section 108-20

2AA

Beneficiary of trust that makes a capital gain taken into account in working out the net income of the trust

The beneficiary is treated as having an extra capital gain corresponding to the beneficiary's share of the capital gain (taking into account adjustments in respect of the CGT discount and small business concessions).

 

Subdivision
115-C

3

All entities

If any of your commercial debts have been forgiven in the income year, your net capital losses (including net capital losses from collectables) may be reduced.

sections
245-130 and 245-135

4

A company

If it has a change of ownership or control during the income year, and has not satisfied the business continuity test, it works out its net capital gain and net capital loss in a special way.

Subdivision
165-CB

5

A company

It cannot apply a net capital loss unless:

•     the same people owned the company during the loss year, the income year and any intervening year; and

•     no person controlled the company's voting power at any time during the income year who did not also control it during the whole of the loss year and any intervening year;

or the company has satisfied the business continuity test.

Subdivision
165-CA

6

A company

If one or more of these things happen:

•      a capital gain or loss is injected into it;

•      a tax benefit is obtained from its available net capital losses or current year capital losses;

•      a tax benefit is obtained because of its available capital gains;

the Commissioner can disallow its net capital losses or current year capital losses, and it may have to work out its net capital loss in a special way.

Division 175

7

A company

A company can transfer a surplus amount of its net capital loss to another company so that the other company can apply the amount in the income year of the transfer. (Both companies must be members of the same wholly-owned group.)

Subdivision
170-B

7A

The head company of a consolidated group or a MEC group

The head company of a consolidated group or a MEC group must apply the capital loss from CGT event L1 over at least 5 income years

section
104-500

8

A PDF

If it is a PDF at the end of an income year for which it has a net capital loss, it can apply the loss in a later income year only if it is a PDF throughout the last day of the later income year.

section 195- 25

9

A PDF

If it becomes a PDF during an income year, it works out its net capital gain and net capital loss for the income year in a special way.

section 195- 35

10

Body that has ceased to be an STB

Net capital losses made before cessation disregarded. Special rules apply in cessation year where net capital gain before cessation and net capital loss after cessation.

section 24AX

10A

All entities

Division 316 contains special rules affecting capital gains and capital losses connected with demutualisation of friendly society health or life insurers.

Division 316

11

A life insurance company

Division 320 contains special rules that apply to capital gains and capital losses

Division 320

12

A company

The capital gain or capital loss a company makes from a CGT event that happened to a share in a company that is a foreign resident may be reduced.

Subdivision
768-G

13

A PDF

Sections 102-5 and 102-10 do not apply to the calculation of net capital gains and losses. Capital gains and losses are instead allocated to separate classes of income.

Subdivision C of Division 10E of Part III

14

A CFC

In calculating the CFC's attributable income, pre-1 July 1990 capital losses are disregarded.

section 409

Guide to Division 103



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback