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INCOME TAX ASSESSMENT ACT 1997 - SECT 116.20

General rules about capital proceeds

             (1)  The capital proceeds from a * CGT event are the total of:

                     (a)  the money you have received, or are entitled to receive, in respect of the event happening; and

                     (b)  the * market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).

Note 1:       The timing rules for each event are in Division 104.

Note 2:       In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103-10.

Note 3:       If you dispose of shares in a buy-back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936 .

             (2)  This table sets out what the capital proceeds from * CGT events F1, F2, H2 and K9 are:

 

General rules about capital proceeds

Event number

Description of event:


The capital proceeds are:

F1

Granting, renewing or extending a lease

Any premium paid or payable to you for the grant, renewal or extension

F2

Granting, renewing or extending a long-term lease

The greatest of:

(a) the * market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and

(b) what would have been that market value if you had not granted, renewed or extended the lease; and

(c)  any premium paid or payable to you for the grant, renewal or extension

H2

Receipt for event relating to a CGT asset

The money or other consideration you received, or are entitled to receive, because of the act, transaction or event

K9

Entitlement to receive payment of a * carried interest

The amount of the payment, to the extent that it is a payment of the * carried interest

             (3)  In working out the * market value of the property the subject of the grant, renewal or extension of a long-term lease:

                     (a)  include the market value of any building, part of a building, structure or improvement that is treated as a separate * CGT asset from the property; and

                     (b)  disregard any * depreciating assets for whose decline in value the lessor has deducted or can deduct an amount under this Act.

Note:          Subdivision 108-D sets out when a building, structure or improvement is treated as a separate CGT asset.

             (4)  In working out the amount of any premium paid or payable to the lessor for the grant, renewal or extension of a long-term lease, disregard any part of it that is attributable to a * depreciating asset of that kind.

                   The payment of any premium can include giving property: see section 103-5.

             (5)  In working out the proceeds of a * CGT event that is a * supply, disregard the amount of your * net GST (if any) on the supply.

Modifications to general rules



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