Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 723.25

  (1)   Section   723 - 10 or 723 - 15 applies differently if:

  (a)   a * realisation event happens to some part of a * CGT asset (the underlying asset ) you own that, at the time of the event:

  (i)   is not a * depreciating asset; or

  (ii)   is an item of your * trading stock; or

  (iii)   is a * revenue asset of yours;

    but not to the remainder of the underlying asset; or

  (b)   a realisation event consists of creating an interest in a CGT asset (also the underlying asset ) you own that, at the time of the event, is covered by subparagraph   (a)(i), (ii) or (iii).

  (2)   The section applies on the basis that:

  (a)   the * realisation event happens to the underlying asset; and

  (b)   the shortfall on creating the right referred to in paragraph   723 - 10(1)(e) or 723 - 15(1)(c); and

  (c)   the deficit on realisation referred to in paragraph   723 - 10(1)(g) or 723 - 15(1)(e);

are each reduced by multiplying its amount by this fraction:

  (3)   For the purposes of the formula in subsection   (2):

"market value of part" means the * market value, at the time of the * realisation event, of the part referred to in paragraph   (1)(a) or the interest referred to in paragraph   (1)(b), as appropriate.

"market value of underlying asset" means the * market value, immediately before the * realisation event, of the underlying asset.