Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p10
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 10/14)
Character Range: 503635–506301

$100,000.

140‑70  Gain referable to fall in value of shares owned by others

 (1) The gain referable to the decrease in value of *decreased value shares owned by other entities is the smaller of these 2 amounts.

 (2) The first amount is:

Example: To continue the example in sections 140‑55 to 140‑65, the controller's class B shares have increased in value by $10,000 (200 shares increasing by $50 per share).

 The decreased value shares of the controller are the 800 class A shares. Each share decreases in value by $50, making the total decrease in their market value $40,000.

 The only other decreased value shares are the 100 class A shares of the controller's associate. The total decrease in their market value is $5,000.

 The first amount is:

 (3) The second amount is:

Example: To continue the example, the decreased value shares owned by other entities are the class A shares of the controller's associate. The total decrease in their market value is $5,000.

 The controller's class B shares have increased in value by $10,000.

 The total share value increase of the share value shift is the total increase in market value of all the shares. The 700 class B shares of the controller's associate have increased in value by $35,000 ($50 each). The 100 class B shares of the third party have increased in value by $5,000. The total increase is:

 The second amount is:

 The smaller of the 2 amounts is $1,000.

140‑75  Gain referable to fall in value of shares owned by the entity

 (1) The gain referable to the decrease in value of *decreased value shares owned by the entity is the smallest of these 3 amounts.

 (2) The first amount is:

Example: To continue the example in sections 140‑55 to 140‑70, the controller's class B shares have increased in value by $10,000.

 The decreased value shares of the controller are the 800 class A shares. The total decrease in their market value is $40,000.

 The only other decreased value shares are the 100 class A shares of the controller's associate. The decrease in their market value is $5,000.

 The first amount is:

 (3) The second amount is:

Example: To continue the example, the controller's decreased value shares are the 800 class A shares. The decrease in their market value is $40,000.

 The controller's class B shares have increased in value by $10,000. The total share value increase of the share value shift is $50,000.

 The second amount is:

 (4) The third amount is worked out differently, depending on whether the increase in the *cost base or *reduced cost base of each *increased value share is being worked out.

Increase in cost base

 (5) If the