Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 20.115

Working out the profit on the disposal

             (1)  The profit on the disposal is the amount by which the * consideration receivable for the disposal exceeds:

*          the amount it cost you to acquire the * car;

                   plus:

*          any capital expenditure you incurred on the car after acquiring it.

             (2)  The consideration receivable is worked out using this table:

 

Consideration receivable for the disposal of the car

Item

In this situation:

the consideration receivable is:

1

you sell the * car for an amount specific to it

the proceeds of the sale, less the expenses of the sale

2

you sell the * car with other property without a specific amount being allocated to it

the part of the total proceeds of the sale that is reasonably attributable to the car less the part of the reasonably attributable expenses of the sale

3

you trade the * car in and buy another car

the value of the trade-in, plus any other consideration you receive

4

you sell the * car and another entity buys another car

the amount by which the cost of the other car is reduced by the sale, plus any other consideration you receive

5

you dispose of the * car to an insurer because it is lost or destroyed

the amount or value received or receivable under the insurance policy

             (3)  However, if the disposal of the * car is a * taxable supply, the consideration receivable does not include an amount equal to the * GST payable on the supply.



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