Under the realisation time method:
• losses on realisation of affected interests in the losing entity are reduced; and
• gains on realisation of affected interests in the gaining entity are reduced, within limits worked out by reference to the reductions in losses on affected interests in the losing entity; and
• certain 95% services indirect value shifts are disregarded.
This Subdivision also explains how its reduction of a loss or gain affects CGT assets, trading stock and revenue assets.
727 - 610 Consequences of indirect value shift
727 - 615 Reduction of loss on realisation event for affected interest in losing entity
727 - 620 Reduction of gain on realisation event for affected interest in gaining entity
727 - 625 Total gain reductions not to exceed total loss reductions
727 - 630 How cap in section 727 - 625 applies if affected interest is also trading stock or a revenue asset
727 - 635 Splitting an equity or loan interest
727 - 640 Merging equity or loan interests
727 - 645 Effect of CGT roll - over
Further exclusion for certain 95% services indirect value shifts if realisation time method must be used
727 - 700 When 95% services indirect value shift is excluded
95% services indirect value shifts that are not excluded
727 - 705 Another provision of the income tax law affects amount related to services by at least $100,000
727 - 710 Ongoing or recent service arrangement reduces value of losing entity by at least $100,000
727 - 715 Service arrangements reduce value of losing entity that is a group service provider by at least $500,000
727 - 720 Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000
727 - 725 Meaning of predominantly - services indirect value shift