INCOME TAX ASSESSMENT ACT 1997 - SECT 855.50 Trust becomes a resident trust

INCOME TAX ASSESSMENT ACT 1997 - SECT 855.50

  (1)   If a trust becomes a * resident trust for CGT purposes, there are rules relevant to each * CGT asset that the trustee owned just before the trust became a resident trust for CGT purposes, except one:

  (a)   that is * taxable Australian property; or

  (b)   that the trustee * acquired before 20   September 1985.

  (2)   The first element of the * cost base and * reduced cost base of the asset (at the time the trust becomes a * resident trust for CGT purposes) is its * market value at that time.

  (3)   Also, Parts   3 - 1 and 3 - 3 apply to the asset as if the trustee had * acquired it at the time the trust became a * resident trust for CGT purposes.

Exception

  (4)   This section does not apply to a trust if, just before it became a * resident trust for CGT purposes, it was a * CFT because of paragraph   342(a) of the Income Tax Assessment Act 1936 .

Note:   This section is disregarded in calculating the attributable income of a trust: see section   102AAZB of the Income Tax Assessment Act 1936 .