valuation date value (1 October 2001)

base cost

asset acquired on/after 1 Oct 2001

Asset acquired before 1 Oct 2001

base cost = VDV + qualifying expenditure incurred after 1 Oct 2001

Paragraph 26: VDV where Proceeds > Expenditure, or Expenditure cannot be determined

Methods of determining VDV: 1) Market value on 1Oct 2001 (par 29), 2) Time-apportionment base cost (par 30), 3) 20% of (proceeds less post 1Oct 2001 expenditure/ net proceeds)

If the Market value is adopted as the VDV and the Proceeds < MV or (MV > Proceeds)....then the VDV = Proceeds less Post 1 Oct 2001 expenditure (not MV).

VDV where the Expenditure cannot be determined (par 26(2)) VDV is calculated using: 1) MV on 1 Oct 2001, 2) 20% of (Nett Proceeds)

Paragraph 27: Proceeds <= Expenditure

MV is determined or published and A)Pre-valuation expenditure >= Proceed or >MV at valuation date.
VDV = HIGHER of:
1) Market value
2)Proceeds less post 1 Oct 2001 expenditures

MV is determined or published and A(above) does not apply
VDV = LOWER of:
1) Market value
2) Time apportionment base cost

MV is not determined or published:
VDV = TAB

There is a limitation on VDV when the MV method has been adopted: it is not possible to create a loss using the MV method and the MV is limited to the proceeds, resulting in neither a capital gain/loss

valuation date value (1 October 2001)

base cost

There is a limitation on VDV when the MV method has been adopted: it is not possible to create a loss using the MV method and the MV is limited to the proceeds, resulting in neither a capital gain/loss

option 3 would only be used if the taxpayer did not have the asset valued and had no record of the actual, original cost of the asset