Taxation Determination TD 93/183







[ Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.] | 1.No CGT event happens when the building is removed. On removal, the building and land are split into separate assets (see TD 93/180). | 2. The cost base of the post-CGT building and land is apportioned under section 112-25 of the Income Tax Assessment Act 1997 . | 3. On relocation of the building to the pre-CGT land, the building continues to be a separate post-CGT asset (see TD 93/182). | 4. Any capital improvements made to the pre-CGT land will be treated as an asset separate from the land where the threshold tests in subsections 108-70(2) and (3) are satisfied. | 5. The pre-CGT land remains a pre-CGT asset. Upon disposal of the land and building, a capital gain or capital loss may only arise in respect of the building (and capital improvements if they are treated as a separate asset). | Commissioner of Taxation 9 September 1993 | Previously issued as Draft TD 93/D78


Related rulings: TD 93/180 TD 93/181 TD 93/182 TD 93/184
Legislative references: ITAA 1997 108-55(2) ITAA 1997 108-70(3) ITAA 1997 112-25
Subject references: CGT assets CGT composite assets CGT cost base CGT cost base modification-split, changed or merged asset rule CGT separate assets pre-CGT assets