Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 723.50

  (1)   Subsection   723 - 10(3) or (4) or 723 - 15(3) applies differently if the right created in respect of the underlying asset is also * trading stock or a * revenue asset at the time of a * realisation event that happens to the right.

  (2)   The gain that is taken into account for the purposes of that subsection is:

  (a)   if the right is also * trading stock--worked out under section   977 - 35 or 977 - 40 (about realisation events for trading stock); or

  (b)   if the right is also a * revenue asset--the greater of:

  (i)   the gain worked out under section   977 - 15 (about realisation events for CGT assets); and

  (ii)   the gain worked out under section   977 - 55 (about realisation events for revenue assets).

Table of sections

723 - 105   Reduced cost base of interest reduced when interest realised at a loss

723 - 110   Direct and indirect roll - over replacement for underlying asset