Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.15

  (1)   CGT event B1 happens if you enter into an agreement with another entity under which:

  (a)   the right to the use and enjoyment of a * CGT asset you own passes to the other entity; and

  (b)   title in the asset will or may pass to the other entity at or before the end of the agreement.

Note:   Division   240 provides for the inclusion of amounts under hire purchase agreements in assessable income.

  (2)   The time of the event is when the other entity first obtains the use and enjoyment of the asset.

  (3)   You make a capital gain if the * capital proceeds from the agreement are more than the asset's * cost base. You make a capital loss if those capital proceeds are less than the asset's * reduced cost base.

Exceptions

  (4)   A * capital gain or * capital loss you make is disregarded if:

  (a)   title in the asset does not pass to the other entity at or before the end of the agreement; or

  (b)   you * acquired the asset before 20   September 1985.

Table of sections

104 - 20   Loss or destruction of a CGT asset: CGT event C1

104 - 25   Cancellation, surrender and similar endings: CGT event C2

104 - 30   End of option to acquire shares etc.: CGT event C3