• Specific Year
    Any

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.65 Converting a trust to a unit trust: CGT event E3

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.65

Converting a trust to a unit trust: CGT event E3

  (1)   CGT event E3 happens if:

  (a)   a trust (that is not a unit trust) over a * CGT asset is converted to a unit trust; and

  (b)   just before the conversion, a beneficiary under the trust was absolutely entitled to the asset as against the trustee (disregarding any legal disability the beneficiary is under).

  (2)   The time of the event is when the trust is converted.

  (3)   The beneficiary makes a capital gain if the * market value of the asset (when the trust is converted) is more than the asset's * cost base. The beneficiary makes a capital loss if that market value is less than the asset's * reduced cost base.

Exception

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

Download

No downloadable files available