Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p32
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 32/40)
Character Range: 1900996–1903563

$20,000. The painting falls in value to $50,000.
 In 1999 you sell your shares for $35,000 (the actual capital proceeds). You would otherwise make a capital loss of $25,000.
 However, the actual capital proceeds are replaced with $60,000 (the market value of the shares if the painting had not fallen in value). You do not make a capital loss from selling the shares.
 You do make a collectable loss equal to:
Note: You can subtract capital losses from collectables only from your capital gains from collectables: see section 108‑10.

104‑230  Pre‑CGT shares or trust interest: CGT event K6
 (1) CGT event K6 happens if:
 (a) you own *shares in a company or an interest in a trust you *acquired before 20 September 1985; and
 (b) *CGT event A1, C2, E1, E2, E3, E5, E6, E7, E8, J1 or K3 happens in relation to the shares or interest; and
 (c) there is no roll‑over for the other CGT event; and
 (d) the applicable requirement in subsection (2) is satisfied.
 (2) Just before the other event happened:
 (a) the *market value of property of the company or trust (that is not its *trading stock) that was *acquired on or after 20 September 1985; or
 (b) the market value of interests the company or trust owned through interposed companies or trusts in property (except trading stock) that was *acquired on or after 20 September 1985;
must be at least 75% of the *net value of the company or trust.
 (5) The time of CGT event K6 is when the other event happens.
 (6) You make a *capital gain equal to that part of the *capital proceeds from the *share or interest that is reasonably attributable to the amount by which the *market value of the property referred to in subsection (2) is more than the sum of the *cost bases of that property.
Note: You cannot make a capital loss.
 (7) This section applies to property that a company that is a foreign resident *acquired after 15 August 1989 from another company as if it were acquired before 20 September 1985 if:
 (a) the other company acquired it before 20 September 1985; and
 (b) the companies are members of the same *wholly‑owned group; and
 (c) the property is not *taxable Australian property.
 (8) In working out the *net value of a company or trust for the purposes of subsection (2), disregard:
 (a) the discharge or release of any liabilities; or
 (b) the *market value of any *CGT assets acquired;
if the discharge or release, or the *acquisition, was done for a purpose that included ensuring that the requirement in subsection (2) would not be satisfied in a particular situation.

Exceptions
 (9) CGT event