Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT (CAPITAL GAINS) ACT 1986 No. 52 of 1986 - SECT 14

14. Section 82KZG of the Principal Act is repealed and the following section
is substituted: Special provision relating to partnerships

"82KZG. Section 82KZE does not apply in relation to a taxpayer being a
partnership but, where the rental property loan interest of the partnership in
relation to a year of income exceeds the sum of-

   (a)  the amount (if any) of the deduction allowable to the partnership
        under section 51 in relation to the year of income in respect of that
        rental property loan interest; and

   (b)  the amount (if any) by which a capital gain or capital gains that, but
        for sub-section 160ZA (1), would be deemed by Part IIIA to have
        accrued to the partnership in respect of the disposal of a prescribed
        asset or prescribed assets (within the meaning of section 160ZA)
        during the year of income is reduced by virtue of sub-section 160ZA
        (1), each partner in the partnership shall be deemed, for the purposes
        of section 51, this Subdivision and Part IIIA, to have incurred-

   (c)  in a case where the year of income is the transitional year of
        income-in that year of income and immediately after the commencement
        date; and

   (d)  in any other case-at the beginning of the year of income, in gaining
        or producing assessable income, rental property loan interest equal to
        the partner's portion of the excess.".