Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 15/20)
Character Range: 1812783–1815643

*reduced cost base of the land are reduced by the part of the cost base or reduced cost base of the land that is apportioned to the covenant.
Example: Lisa receives $10,000 for entering into a conservation covenant that covers 15% of the land she owns. Lisa uses the following figures in calculating the cost base of the land that is apportioned to the covenant:
 The cost base of the entire land is $200,000.
 The market value of the entire land before entering into the covenant is $300,000, and its market value after entering into the covenant is $285,000.
 Lisa calculates the cost base of the land that is apportioned to the covenant to be:

             She reduces the cost base of the land by the part that is apportioned to the covenant:

Exceptions
 (6) *CGT event D4 does not happen if:
 (a) you did not receive any *capital proceeds for entering into the covenant; and
 (b) you cannot deduct an amount under Division 31 for entering into the covenant.
Note: In this case, CGT event D1 will apply.
 (7) A *capital gain or *capital loss you make is disregarded if you *acquired the land before 20 September 1985.

Subdivision 104‑E—Trusts

Table of sections
           104‑55 Creating a trust over a CGT asset: CGT event E1
           104‑60 Transferring a CGT asset to a trust: CGT event E2
           104‑65 Converting a trust to a unit trust: CGT event E3
           104‑70 Capital payment for trust interest: CGT event E4
           104‑71 Adjustment of non‑assessable part
           104‑72 Reducing your capital gain under CGT event E4 if you are a trustee
           104‑75 Beneficiary becoming entitled to a trust asset: CGT event E5
           104‑80 Disposal to beneficiary to end income right: CGT event E6
           104‑85 Disposal to beneficiary to end capital interest: CGT event E7
           104‑90 Disposal by beneficiary of capital interest: CGT event E8
           104‑95 Making a capital gain
           104‑100 Making a capital loss
           104‑105 Creating a trust over future property: CGT event E9
           104‑107A AMIT—cost base reduction exceeds cost base: CGT event E10
           104‑107B Annual cost base adjustment for member's unit or interest in AMIT
           104‑107C AMIT cost base net amount
           104‑107D AMIT cost base reduction amount
           104‑107E AMIT cost base increase amount
           104‑107F Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income
           104‑107G Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—adjustment of cost of asset
           104‑107H Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—amount included in assessable income

104‑55  Creating a trust over a CGT asset: CGT event E1
 (1) CGT event E1 happens