Transfer of assets

When you incorporate your business, it is likely you will transfer business assets from your original business structure to your new company.

Transferring an asset to your company is a CGT event. When a CGT event occurs, a capital gain or capital loss can arise. However, provided certain conditions are satisfied, you can choose to rollover the capital gain or loss under the CGT rollover provisions. Applying the rollover means that you defer any immediate CGT consequences arising from the capital gain or loss.

As mentioned, the rollover is optional. Whether you decide to apply the rollover or not, you do not have to provide the Commissioner with a special notification of your choice. Your decision will be evidenced by the way you treat the capital gain or loss in your tax return.

    Last modified: 24 Feb 2010QC 19526