Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 6/40)
Character Range: 1840197–1842716

is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by:
Example: To vary the example in subsection (2), suppose you dispose of 50% of your interest for $5,000 (the capital proceeds).
 The Step 2 amount becomes:

 You make a capital gain of:

There is more than one beneficiary
 (4) If you are not the only beneficiary with an interest in the trust capital and you *dispose of your interest, any *capital gain is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by:

Example: To vary the example in subsection (2), suppose you have a 20% interest in the trust capital and you dispose of it for $4,000 (the capital proceeds).
 The Step 2 amount becomes:

 You make a capital gain of:

 (5) If you are not the only beneficiary with an interest in the trust capital and you *dispose of part of your interest, any *capital gain is worked out using the method statement in subsection (1), except that the Step 2 amount is replaced by:

Example: To vary the example in subsection (2), suppose you have a 50% interest in the trust capital. You dispose of 20% of it for $1,000 (the capital proceeds).
 The Step 2 amount becomes:

 You make a capital gain of:

Exception
 (6) A *capital gain you make is disregarded if you *acquired the *CGT asset that is the interest in the trust capital before 20 September 1985.
Note: You can make a gain if you dispose of an interest in a trust that you acquired before that day: see CGT event K6.

104‑100  Making a capital loss

You are the only beneficiary
 (1) If you are the only beneficiary with an interest in the trust capital and you *dispose of that interest, you work out if you have made a *capital loss in this way:

      Working out your capital loss
           Step 1. Work out the *capital proceeds from the *disposal.
           Step 2. Work out the *reduced net asset amount.
           Step 3. If the Step 1 amount is less, you make a capital loss equal to the difference.
 (2) The reduced net asset amount is worked out in this way:

      Working out the reduced net asset amount
           Step 1. Work out the total of the *reduced cost bases (at the time of the disposal) of the *CGT assets that the trustee *acquired on or after 20 September 1985 and that formed part of the trust capital at that time.
           Step 2. Work out the total of the *market values (at the time of the disposal) of the *CGT assets that the trustee *acquired before 20 September 1985