Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p24
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 24/40)
Character Range: 93078–95706

at the time of the declaration) there is no likelihood that the shareholders in the company, or shareholders of the relevant class of shares, will receive any further distribution in the course of winding up the company.

 (2) The time of the event is when the liquidator makes the declaration.

 (3) You can choose to make a capital loss equal to the *reduced cost base of your *share (as at the time of the declaration).

 (4) If you make the choice, the *cost base and *reduced cost base of the *share are reduced to nil just after the liquidator makes the declaration.

Note: This is for the purpose of working out if you make a capital gain or loss from any later CGT event in relation to the share.

Exception

 (5) You cannot choose to make a *capital loss if you *acquired the *CGT asset that is the *share before 20 September 1985.

Subdivision 104‑H—Special capital receipts

Table of sections

104‑150 Forfeiture of deposit: CGT event H1
104‑155 Receipt for event relating to a CGT asset: CGT event H2

104‑150  Forfeiture of deposit: CGT event H1

 (1) CGT event H1 happens if a deposit paid to you is forfeited because a prospective sale or other transaction does not proceed.

  The payment can include giving property: see section 103‑5.

Example: You decide to sell land. Before entering into a contract of sale, the prospective purchaser pays you a 2 month holding deposit of $1,000.

 The negotiations fail and the deposit is forfeited.

 (2) The time of the event is when the deposit is forfeited.

 (3) You make a capital gain if the deposit is more than the expenditure you incur in connection with the prospective sale or other transaction. You make a capital loss if the deposit is less.

 (4) The expenditure can include giving property: see section 103‑5. However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income.

Example: To continue the example: if you gave a lawyer wine worth $400 in connection with the prospective sale, you make a capital gain of:

104‑155  Receipt for event relating to a CGT asset: CGT event H2

 (1) CGT event H2 happens if:

 (a) an act, transaction or event occurs in relation to a *CGT asset that you own; and

 (b) the act, transaction or event does not result in an adjustment being made to the asset's *cost base or *reduced cost base.

Example: You own land on which you intend to construct a manufacturing facility. A business promotion organisation pays you $50,000 as an inducement to start construction early.

 No contractual rights or obligations are created by the