Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 9/29)
Character Range: 2220566–2223282

*non‑assessable non‑exempt income under section 768‑5 (about foreign equity distributions on participation interests) because a company makes a *foreign equity distribution that is:
 (a) debited against a *share capital account of the company; or
 (c) debited against an asset revaluation reserve of the company; or
 (d) directly or indirectly attributable to amounts transferred from such an account or reserve of the company.

118‑21  Carried interests

CGT events relating to carried interests not to be treated as income
 (1) The modifications in subsections (2) and (3) apply if *CGT event K9 happens in relation to your entitlement to receive a payment of the *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP.
 (2) These provisions do not apply to the CGT event:
 (a) sections 6‑5 (about *ordinary income), 8‑1 (about amounts you can deduct), 15‑15 and 25‑40 (about profit‑making undertakings or plans) and 118‑20 (reducing capital gains if amount otherwise assessable);
 (b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit‑making undertakings or schemes).
 (3) Section 6‑10 (about *statutory income) does not apply to the *CGT event except so far as that section applies in relation to section 102‑5 (about net capital gains).

118‑22  Superannuation lump sums and employment termination payments
  In applying section 118‑20, treat a *superannuation lump sum or an *employment termination payment that you receive as being included in your assessable income.

118‑24  Depreciating assets
 (1) A *capital gain or *capital loss you make from a *CGT event (that is also a *balancing adjustment event) that happens to a *depreciating asset is disregarded if the asset was:
 (a) an asset you *held; or
 (b) if you are a partner, an asset of the partnership; or
 (c) if you are absolutely entitled to the asset as against the trustee of a trust (disregarding any legal disability), an asset of the trustee;
where the decline in value of the asset was worked out under Division 40 (including that Division as it applies under Division 355), or the deduction for the asset was calculated under Division 328, or would have been if the asset had been used.
 (2) However, subsection (1) does not apply to:
 (a) a *capital gain or *capital loss you make from *CGT event J2 or *CGT event K7 happening; or
 (b) a *depreciating asset for which you or another entity has deducted or can deduct amounts under Subdivision 40‑F or 40‑G.

118‑25  Trading stock
 (1) A *capital gain or *capital loss you make from a *CGT asset is disregarded if, at the time of the *CGT event, the asset is:
 (a) your *trading stock; or
 (b) if you are a partner,