INCOME TAX ASSESSMENT ACT 1997 - SECT 725.380 Decreases in adjustable value of down interests (with pre - shift losses)
INCOME TAX ASSESSMENT ACT 1997 - SECT 725.380
Decreases in adjustable value of down interests (with pre - shift losses)Use the following method statement to work out the decrease in * adjustable value of a * down interest under:
(a) item 5 or 7 of the table in subsection 725 - 250(2); or
(b) item 3, 5 or 8 of the table in subsection 725 - 335(3).
Method statement
Step 1. Group together all * down interests of the kind referred to in the relevant item that:
(a) immediately before the * decrease time, had the same * adjustable value as the down interest; and
(b) immediately before that time had the same * market value as the down interest; and
(c) sustained the same decrease in market value as the down interest because of the * direct value shift.
Step 2. Work out the value shifted from that group of * down interests to the * up interests referred to in the relevant item using the formula:
Step 3. The decrease in * adjustable value of the * down interest under the relevant item is equal to:
Table of Subdivisions
Guide to Division 727
727 - A Scope of the indirect value shifting rules
727 - B What is an indirect value shift
727 - D Working out the market value of economic benefits
727 - F Consequences of an indirect value shift
727 - G The realisation time method
727 - H The adjustable value method
727 - K Reduction of loss on equity or loan interests realised before the IVS time
727 - L Indirect value shift resulting from a direct value shift