22 (Capital Gains Tax)[1]

Capital gain if capital proceeds from creating the

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Capital gain if capital proceeds from creating the trust are more that the asset’s cost  base Capital loss if capital proceeds are less than the asset’s reduced cost base  CGT event does not happen in certain cases (eg in the case of a bare trust)  Disregard capital gain/loss if pre-CGT asset CGT event E2 CGT event E2 Arises if a taxpayer transfers a CGT asset to an existing trust Does not happen when there is no real change in underlying beneficial ownership Time of CGT event is when asset transferred Capital gain if capital proceeds from creating the trust are more than the asset’s  cost base  Capital loss if capital proceeds are less than the asset’s reduced cost base Disregard capital gain/loss if pre-CGT asset CGT event E4 CGT event E4
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Arises if a capital payment is made in relation to a unit or interest in a trust and  some or all of the payment is not included in assessable income Time of CGT event is just before the end of the income year in which trustee makes  the payment, or just before the time another CGT event applies to the unit or  interest  Capital gain if the non-assessable part of the payment exceeds the cost base of  unit/interest Capital gain reduces the cost base and reduced cost base of unit/interest Disregard capital gain/loss if pre-CGT asset CGT event E5 CGT event E5 Arises if a beneficiary becomes absolutely entitled to a CGT asset of a trust (does  not apply to unit trust or deceased estate) Time of CGT event is when the beneficiary becomes absolutely entitled to the CGT  asset  Trustee makes:  Capital gain if the market value of the asset is more than the asset’s cost base  Capital loss if the market value of asset is less than asset’s reduced cost base CGT event E5 (cont) CGT event E5 (cont) Beneficiary makes:  Capital gain if market value of the asset exceeds cost base of beneficiary’s  interest in the trust capital to the extent that it relates to the asset  Capital loss if the market value is less than the reduced cost base of that  interest Disregard capital gain/loss if pre-CGT asset
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CGT event F1 CGT event F1 Arises if lessor grants, renews or extends lease Time of CGT event is when contract for lease entered into, renewed or extended Lessor makes a capital gain if the capital proceeds from the grant etc are more than  the expenditure incurred on the grant etc Lessor makes capital loss if the capital proceeds are less than the expenditure Where the lease is for 50 years or more, lessor can choose to instead use CGT  event F2 CGT event F2 CGT event F2
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