Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_19:p1
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 19 (pt 1/4)
Character Range: 425814–428368

19  After Division 976
Insert:

Division 977—Realisation events, and the gains and losses they realise for income tax purposes

Table of sections

CGT assets
977‑5 Realisation event
977‑10 Loss realised for income tax purposes
977‑15 Gain realised for income tax purposes

Trading stock
977‑20 Realisation event
977‑25 Disposal of trading stock: loss realised for income tax purposes
977‑30 Ending of an income year: loss realised for income tax purposes
977‑35 Disposal of trading stock: gain realised for income tax purposes
977‑40 Ending of an income year: gain realised for income tax purposes

Revenue assets
977‑50 Meaning of revenue asset
977‑55 Loss or gain realised for income tax purposes

CGT assets

977‑5  Realisation event
  For a *CGT asset, a realisation event is a *CGT event (except CGT event E4 and CGT event G1).

977‑10  Loss realised for income tax purposes
 (1) A loss is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital loss from the event. That capital loss is the loss realised by the event.
 (2) If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event, the *capital loss is reduced by the same amount.

977‑15  Gain realised for income tax purposes
 (1) A gain is realised for income tax purposes by a *realisation event that happens to a *CGT asset if, and only if, an entity makes a *capital gain from the event. That capital gain is the gain that is realised by the event.
 (2) If a provision of this Act reduces the gain that would, apart from that provision, be *realised for income tax purposes by the event, the *capital gain is reduced by the same amount.

Trading stock

977‑20  Realisation event
  For an item of *trading stock, a realisation event is a disposal of the item or the ending of an income year.

977‑25  Disposal of trading stock: loss realised for income tax purposes
 (1) A loss is realised for income tax purposes by a *realisation event consisting of disposal of an item of *trading stock if, and only if:
 (a) the item is disposed of, for less than its *cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
 (b) the item is disposed of in a later income year for less than its *value as trading stock of the entity on hand at the start of the later income year.
 (2) The loss that is realised for income tax purposes by the event is the difference between the amount included