Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 30/40)
Character Range: 1896563–1899040

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.
 (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 entity; or
 (c) is a foreign resident.
 (2) If the asset passes to a beneficiary who is a foreign 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) is not *taxable Australian property.
 (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 must include in the date of death return any net capital gain for the income year when you died.

Exception
 (5) A *capital gain or *capital loss is disregarded if you *acquired the asset before 20 September 1985.
Note: There is also an exception for certain philanthropic testamentary gifts: see section 118‑60.

104‑220  CGT asset starts being trading stock: CGT event K4
 (1) CGT event K4 happens if:
 (a) you start holding as *trading stock a *CGT asset you already own but do not hold as trading stock; and
 (b) you elect under paragraph 70‑30(1)(a) to be treated as having sold the asset for its *market value.
Note 1: Paragraph 70‑30(1)(a) allows you to elect the cost of the asset, or its market value, just before it became trading stock.
Note 2: There is an exemption if you elect its