Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.107A

  (1)   CGT event E10 happens if:

  (a)   you are a * member of an * AMIT in respect of an income year because you have a * CGT asset that is your unit or your interest in the AMIT; and

  (b)   either:

  (i)   the * cost base of that asset is reduced under subsection   104 - 107B(2) during the income year; or

  (ii)   the cost base of that asset is nil at the start of the income year; and

  (c)   the asset's * AMIT cost base net amount for the income year is the excess mentioned in paragraph   104 - 107C(a); and

  (d)   the asset's AMIT cost base net amount for the income year exceeds the cost base of the asset.

  (2)   The time of the event is:

  (a)   if subparagraph   (1)(b)(i) applies--the time at which the reduction occurs under section   104 - 107B; or

  (b)   if subparagraph   (1)(b)(ii) applies--the time at which the * cost base would have been reduced under subsection   104 - 107B(2) during the income year if the cost base had been greater than nil at the start of the income year.

  (3)   You make a capital gain equal to:

  (a)   if the * cost base of the asset is nil--the excess mentioned in paragraph   104 - 107C(a); or

  (b)   if the cost base of the asset is not nil--the excess mentioned in paragraph   (1)(d) of this section.

Note 1:   If you make a capital gain, the cost base and reduced cost base of the CGT asset are reduced to nil (see paragraph   104 - 107B(2)(a)).

Note 2:   You cannot make a capital loss.

Exceptions

  (4)   A * capital gain you make from * CGT event E10 is disregarded if you * acquired the * CGT asset that is the unit or interest before 20   September 1985.