Document ID: chunk:federal_register_of_legislation:C2025C00029:section:115:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 115 (pt 23/40)
Character Range: 6563017–6565837

entity
Subdivision 880‑D—Consular activities
Guide to Subdivision 880‑D
880‑200 What this Subdivision is about
Operative provisions
880‑205 Income from consular functions—non‑assessable non‑exempt income

Chapter 3—Specialist liability rules

Part 3‑95—Value shifting

Division 723—Direct value shifting by creating right over non‑depreciating asset

Table of Subdivisions
723‑A Reduction in loss from realising non‑depreciating asset
723‑B Reducing reduced cost base of interests in entity that acquires non‑depreciating asset under roll‑over

Subdivision 723‑A—Reduction in loss from realising non‑depreciating asset

Table of sections
723‑1 Object
723‑10 Reduction in loss from realising non‑depreciating asset over which right has been created
723‑15 Reduction in loss from realising non‑depreciating asset at the same time as right is created over it
723‑20 Exceptions
723‑25 Realisation event that is only a partial realisation
723‑35 Multiple rights created to take advantage of the $50,000 threshold
723‑40 Application to CGT asset that is also trading stock or revenue asset
723‑50 Effects if right created over underlying asset is also trading stock or a revenue asset

723‑1  Object
  The purpose of this Division is to reduce a loss that would otherwise be *realised for income tax purposes by a *realisation event happening to an asset (except a *depreciating asset), to the extent that:
 (a) value has been shifted out of the asset by the owner creating in an associate a right over the asset; and
 (b) the value shifted was not brought to tax when the right was created and has not since been brought to tax on a realisation of the right.

723‑10  Reduction in loss from realising non‑depreciating asset over which right has been created
 (1) A loss that would, apart from this Division, be *realised for income tax purposes by a *realisation event is reduced by the amount worked out under subsections (3) and (4) if:
 (a) the event happens to a *CGT asset (the underlying asset) you own that, at the time of the event (the realisation time):
 (i) is not a *depreciating asset; or
 (ii) is an item of your *trading stock; or
 (iii) is a *revenue asset of yours; and
 (b) before the realisation time:
 (i) you created in an *associate of yours; or
 (ii) an entity covered by subsection (2) (about previous owners of the underlying asset) created in an associate of the entity;
  a right in respect of the underlying asset; and
 (c) immediately before the realisation time, the right is still in existence and is owned by an associate of yours; and
 (d) a decrease in the underlying asset's *market value is reasonably attributable to the creating of the right; and
 (e) creating the right involved a *CGT event:
 (i) whose *capital proceeds are less than the market value of the right when created (the