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INCOME TAX ASSESSMENT ACT 1997 - SECT 116.40

Apportionment rule: modification 2

  (1)   If you receive a payment in connection with a transaction that relates to more than one * CGT event, the capital proceeds from each event are so much of the payment as is reasonably attributable to that event.

Example:   You sell a block of land and a boat for a total of $100,000. This transaction involves 2 CGT events.

  The $100,000 must be divided among the 2 events. The capital proceeds from the disposal of the land are so much of the $100,000 as is reasonably attributable to it. The rest relates to the boat.

  (2)   If you receive a payment in connection with a transaction that relates to one * CGT event and something else, the capital proceeds from the event are so much of the payment as is reasonably attributable to the event.

Example:   You are an architect. You receive $70,000 for selling a block of land and giving advice to the new owner. This transaction involves one CGT event: the disposal of the land.

  The capital proceeds from the disposal of the land is so much of the $70,000 as is reasonably attributable to that disposal.

  (3)   The payment can include giving property: see section   103 - 5.


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