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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.


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