Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p30
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 30/40)
Character Range: 107537–110057

CGT event K2 happens if:

 (a) you made a *net capital loss for an income year that, because of subsection 102‑5(2), cannot be applied in working out whether you made a *net capital gain for the income year or a later one; and

 (b) you make a payment in an income year (the payment year) in respect of a debt that was taken into account in working out the amount of that net capital loss; and

 (c) ignoring subsection 102‑5(2), some part of the net capital loss (the denied part) would have been applied (if you had made sufficient *capital gains) in working out whether you had made a *net capital gain for the payment year.

  The payment can include giving property: see section 103‑5.

Note: A net capital loss mentioned in subsection 160ZC(4A) of the Income Tax Assessment Act 1936 is also relevant: see section 104‑210 of the Income Tax (Transitional Provisions) Act 1997.

 (2) The time of the event is when you make the payment.

 (3) You make a capital loss equal to the smallest of:

 (a) the amount you paid; or

 (b) that part of it that was taken into account in working out the denied part; or

 (c) the denied part less the sum of *capital losses you made as a result of previous payments you made in respect of the debt that was taken into account in working out the denied part.

 (4) In calculating that capital loss, disregard any amount you have received as *recoupment of the payment and that is not included in your assessable income.

104‑215  Asset passing to tax‑advantaged entity: CGT event K3

 (1) CGT event K3 happens if you die and a *CGT asset you owned just before dying *passes to a beneficiary in your estate who (when the asset passes):

 (a) is an *exempt entity; or

 (b) is the trustee of a *complying superannuation fund; or

 (c) is the trustee of a *complying approved deposit fund; or

 (d) is the trustee of a *pooled superannuation trust; or

 (e) is not an *Australian resident.

 (2) If the asset passes to a beneficiary who is not an *Australian resident, CGT event K3 happens only if:

 (a) you were an *Australian resident just before dying; and

 (b) the asset (in the hands of the beneficiary) does not have the *necessary connection with Australia.

 (3) The time of the event is just before you die.

 (4) A capital gain is made if the market value of the asset on the day you died is more than the asset's *cost base. A capital loss is made if that market value is less than the asset's *reduced cost base.

Note: The trustee of the estate