Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 10/12)
Character Range: 1950991–1953501

structure (whether or not there is a balancing adjustment):
 (a) Subdivision 40‑D; or
 (b) section 355‑315 or 355‑525 (about R&D).
Example: You construct a timber mill building on land you own. The building is subject to a balancing adjustment on its disposal, loss or destruction. It is taken to be a separate CGT asset from the land.
 (2) A building or structure that is constructed on land that you *acquired before 20 September 1985 is taken to be a separate *CGT asset from the land if:
 (a) you entered into a contract for the construction on or after that day; or
 (b) if there is no contract—the construction started on or after that day.
Example: You bought a block of land with a building on it on 10 August 1984. On 1 December 1999 you construct another building on the land. The other building is taken to be a separate CGT asset from the land.

108‑60  Depreciating asset that is part of a building is a separate asset
  A *depreciating asset that is part of a building or structure is taken to be a separate *CGT asset from the building or structure.
Example: You own a factory from which you carry on a business. You install rest rooms for your employees. The plumbing fixtures and fittings are depreciating assets. These are taken to be a separate CGT asset from the factory.

108‑65  Land adjacent to land acquired before 20 September 1985
  Land that you *acquire on or after 20 September 1985 that is adjacent to land (the original land) you acquired before that day is taken to be a separate *CGT asset from the original land if it and the original land are amalgamated into one title.
Example: On 1 April 1984 you bought a block of land. On 1 June 1999 you bought another block of land adjacent to the first block. You amalgamate the titles to the 2 blocks into 1 title.
 The second block is treated as a separate CGT asset. You can make a capital gain or loss from it if you sell the whole area of land.

108‑70  When is a capital improvement a separate asset?

Improvements to land
 (1) A capital improvement to land is taken to be a separate *CGT asset from the land if one of the balancing adjustment provisions set out in subsection 108‑55(1) applies to the improvement (whether or not there is a balancing adjustment).
Example: You own land that you use for pastoral operations. You build some fences that are destroyed by fire. The fences are depreciating assets and are subject to a balancing adjustment on their destruction under Division 40. The fences are taken to be a separate