Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 2/40)
Character Range: 1830924–1833489

the trustee of the trust owns units or interests in another of the trusts; or
 (b) the trustee of another of the trusts owns units or interests in the trust.
 (6) Item 7 of the table in subsection (4) does not apply if the entity making the payment is a *managed investment trust.

104‑72  Reducing your capital gain under CGT event E4 if you are a trustee
 (1) A *capital gain you make under subsection 104‑70(4) is reduced if:
 (a) you are the trustee of another trust that is a *fixed trust and is not a *complying superannuation entity; and
 (b) you are taken to have a *capital gain under paragraph 115‑215(3)(b) or (c) (your notional gain) in respect of a corresponding trust gain (the trust gain); and
 (c) some or all (the attributable amount) of the total of the non‑assessable parts referred to in subsection 104‑70(4) is attributable to proceeds from the trust gain.
 (2) The *capital gain is reduced (but not below 0) by the lesser of:
 (a) your notional gain; and
 (b) the attributable amount.

104‑75  Beneficiary becoming entitled to a trust asset: CGT event E5
 (1) CGT event E5 happens if a beneficiary becomes absolutely entitled to a *CGT asset of a trust (except a unit trust or a trust to which Division 128 applies) as against the trustee (disregarding any legal disability the beneficiary is under).
Note: Division 128 deals with the effect of death.
 (2) The time of the event is when the beneficiary becomes absolutely entitled to the asset.

Trustee makes a capital gain or loss
 (3) The trustee makes a capital gain if the *market value of the asset (at the time of the event) is more than its *cost base. The trustee makes a capital loss if that market value is less than the asset's *reduced cost base.

Exception for trustee
 (4) A *capital gain or *capital loss the trustee makes is disregarded if it *acquired the asset before 20 September 1985.
Note: There is also an exception for employee share trusts: see section 130‑80.

Beneficiary makes a capital gain or loss
 (5) The beneficiary makes a capital gain if the *market value of the asset (at the time of the event) is more than the *cost base of the beneficiary's interest in the trust capital to the extent it relates to the asset.
  The beneficiary makes a capital loss if that market value is less than the *reduced cost base of that beneficiary's interest in the trust capital to the extent it relates to the asset.

Exceptions for beneficiary
 (6) A *capital gain or *capital loss the beneficiary makes is disregarded if:
 (a) the beneficiary *acquired the *CGT asset that