(1) The capital proceeds from a * CGT event are the total of:
(a) the money you have received, or are entitled to receive, in respect of the event happening; and
(b) the * market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).
Note 1: The timing rules for each event are in Division 104.
Note 2: In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103 - 10.
Note 3: If you dispose of shares in a buy - back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936 .
(2) This table sets out what the capital proceeds from * CGT events F1, F2, H2 and K9 are:
General rules about capital proceeds | ||
Event number | Description of event: |
|
F1 | Granting, renewing or extending a lease | Any premium paid or payable to you for the grant, renewal or extension |
F2 | Granting, renewing or extending a long - term lease | The greatest of: (a) the * market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and (b) what would have been that market value if you had not granted, renewed or extended the lease; and (c) any premium paid or payable to you for the grant, renewal or extension |
H2 | Receipt for event relating to a CGT asset | The money or other consideration you received, or are entitled to receive, because of the act, transaction or event |
K9 | Entitlement to receive payment of a * carried interest | The amount of the payment, to the extent that it is a payment of the * carried interest |
(3) In working out the * market value of the property the subject of the grant, renewal or extension of a long - term lease:
(a) include the market value of any building, part of a building, structure or improvement that is treated as a separate * CGT asset from the property; and
(b) disregard any * depreciating assets for whose decline in value the lessor has deducted or can deduct an amount under this Act.
Note: Subdivision 108 - D sets out when a building, structure or improvement is treated as a separate CGT asset.
(4) In working out the amount of any premium paid or payable to the lessor for the grant, renewal or extension of a long - term lease, disregard any part of it that is attributable to a * depreciating asset of that kind.
The payment of any premium can include giving property: see section 103 - 5.
(5) In working out the proceeds of a * CGT event that is a *
supply, disregard the amount of your * net GST (if any) on the supply.