Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 112 - Modifications to cost base and reduced cost base  

Subdivision 112-D - Same-asset roll-overs  

SECTION 112-145  

112-145   How is the cost base of the asset modified?  
If the transferor acquired the asset on or after 20 September 1985:

(a) the first element of the asset ' s cost base (in the hands of the transferee) is replaced by the asset ' s cost base at the time the transferee acquired it; and

(b) the first element of the asset ' s reduced cost base (in the hands of the transferee) is replaced by the asset ' s reduced cost base at the time the transferee acquired it.

Note 1:

If the transferor acquired the asset before 20 September 1985, the transferee is taken to have acquired it before that day: see Subdivision 126-A .

Note 2:

The reduced cost base may be further modified if the same asset roll-over happens after a demerger: see section 125-170 .