Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p31
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 31/40)
Character Range: 109852–112349

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 if the CGT asset is property under the Cultural Bequests Program: see section 118‑5.

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 cost: see section 118‑25.

 (2) The time of the event is when you start.

 (3) You make a capital gain if the asset's market value (just before it became *trading stock) is more than its *cost base. You make a capital loss if that market value is less than its *reduced cost base.

Exception

 (4) A *capital gain or *capital loss you make is disregarded if you *acquired the asset before 20 September 1985.

104‑225  Special collectable losses: CGT event K5

 (1) CGT event K5 happens if the requirements in subsections (2), (3) and (4) are satisfied.

 (2) There is a fall in the market value of a *collectable of a company or trust.

 (3) *CGT event A1, C2 or E8 happens to:

 (a) *shares you own in the company (or in a company that is a member of the same *wholly‑owned group); or

 (b) an interest you have in the trust;

and there is no roll‑over for that CGT event.

 (4) As a result of the *capital proceeds from that event being replaced under section 116‑80:

 (a) you make a *capital gain that you would not otherwise have made; or

 (b) you do not make the *capital loss you would otherwise have made; or

 (c) you make a capital loss that is less than you would otherwise have made.

Note: The capital proceeds from that event are replaced with the market value of the shares or the interest in the trust as if the fall in the market value of collectables and personal use assets had not occurred: see section 116‑80.

 (5) The