Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 33/34)
Character Range: 1742967–1745462

capital loss for the 1997‑98 income year or an earlier income year, see section 102‑15 of the Income Tax (Transitional Provisions) Act 1997.

102‑20  Ways you can make a capital gain or a capital loss
  You can make a *capital gain or *capital loss if and only if a *CGT event happens. The gain or loss is made at the time of the event.
Note 1: The full list of CGT events is in section 104‑5.
Note 2: The gain or loss may be affected by an exemption, or may be able to be rolled‑over. For exemptions generally, see Division 118. For roll‑overs, see Divisions 122, 123, 124 and 126.
Note 3: You may make a capital gain or capital loss as a result of a CGT event happening to another entity: see subsections 115‑215(3), 170‑275(1) and 170‑280(3).
Note 4: You cannot make a capital loss from a CGT event that happens to your original interests during a trust restructuring period if you choose a roll‑over under Subdivision 124‑N.
Note 5: The capital loss may be affected if the CGT asset was owned by a member of a demerger group just before a demerger: see section 125‑170.
Note 6: Under subsection 230‑310(4) gains and losses are taken to arise from a CGT event in particular circumstances.
Note 7: This section does not apply in relation to the capital gain mentioned in paragraph 294‑120(5)(b) of the Income Tax (Transitional Provisions) Act 1997.

102‑22  Amounts of capital gains and losses
  Most *CGT events provide for calculating a *capital gain or *capital loss by comparing 2 different amounts. The amount of the gain or loss is the difference between those amounts.

102‑23  CGT event still happens even if gain or loss disregarded
  A *CGT event still happens even if:
 (a) it does not result in a *capital gain or *capital loss; or
 (b) a capital gain or capital loss from the event is disregarded.
Example: Lindy sells a car. Section 118‑5 says that any capital gain or loss from a CGT event happening to a car is disregarded. However, the sale is still an example of CGT event A1.

102‑25  Order of application of CGT events
 (1) Work out if a *CGT event (except *CGT events D1 and H2) happens to your situation. If more than one event can happen, the one you use is the one that is the most specific to your situation.
 (2) However, there are 3 exceptions: one for *CGT event J2, one for CGT event K5 and one for CGT event K12.
 (2A) If the circumstances that gave rise to *CGT event J2 constitute another CGT event, CGT event J2 applies in addition to the other event.
Example: