(1) This section applies if:
(a) you hold a * forestry interest in a * forestry managed investment scheme as an * initial participant in the scheme; and
(b) at least one of these conditions is satisfied:
(i) you can deduct or have deducted an amount for an income year under section 394-10 in relation to the forestry interest;
(ii) the condition in subparagraph (i) would be satisfied if subsection 394-10(5) were disregarded; and
(c) a * CGT event happens in relation to the forestry interest, other than a CGT event that happens in respect of thinning.
(2) Your assessable income for the income year in which the * CGT event happens includes:
(a) if, as a result of the CGT event, you no longer hold the * forestry interest--the * market value of the forestry interest (worked out as at the time of the event); or
(b) otherwise--the decrease (if any) in the market value of the forestry interest as a result of the CGT event.
(3) Any amount that you actually receive because of the * CGT event is not included in your assessable income (nor is it * exempt income).