• Rights that are created

    There are several instances where your spouse (or a company or trustee) may create an asset in your favour. The table below explains how to calculate the first element of your cost base or reduced cost base of that asset in each case.

    CGT event

    First element of cost base and reduced cost base

    Creating contractual or other rights (D1)

    Incidental costs incurred by the transferor that relate to the event

    Granting an option (D2)

    Expenditure incurred by the transferor to grant the option

    Granting a right to income from mining (D3)

    Expenditure incurred by the transferor to grant the right

    Granting a lease (F1)

    Expenditure incurred by the transferor on the grant renewal or extension of the lease

    You are taken to have acquired the asset at the time specified by the CGT event. For example, for CGT event D1, you acquire the asset at the time you enter into the contract or, if there is no contract, the time the right is created.

    See also;

      Last modified: 21 Jun 2016QC 17205