Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 112
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Modifications to cost base and reduced cost base
Subdivision 112-A
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General modifications
SECTION 112-30
Apportionment rules
Apportionment on acquisition of an asset
112-30(1)
If you * acquire a * CGT asset because of a transaction and only part of the expenditure you incurred under the transaction relates to the acquisition of the asset, the first element of your * cost base and * reduced cost base of the asset is that part of the expenditure that is reasonably attributable to the acquisition of the asset.
Apportionment of expenditure in other elements
112-30(1A)
If you incur expenditure and only part of it relates to another element of the * cost base or * reduced cost base of a * CGT asset, that element includes that part of the expenditure that is reasonably attributable to that element.
Apportionment for CGT asset that was part of another asset
112-30(2)
The * cost base and * reduced cost base of a * CGT asset is apportioned if a * CGT event happens to some part of the asset, but not to the remainder of it.
112-30(3)
The * cost base for the * CGT asset representing the part to which the * CGT event happened is worked out using the formula:
112-30(4)
The remainder of the * cost base and * reduced cost base of the asset is attributed to the part that remains.
112-30(5)
However, an amount forming part of the * cost base or * reduced cost base of the asset is not apportioned if, on the facts, that amount is wholly attributable to the part to which the * CGT event happened or to the remaining part.
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Hide history noteApportionment on acquisition of an asset
112-30(1)
If you * acquire a * CGT asset because of a transaction and only part of the expenditure you incurred under the transaction relates to the acquisition of the asset, the first element of your * cost base and * reduced cost base of the asset is that part of the expenditure that is reasonably attributable to the acquisition of the asset.
The expenditure can include giving property: see section 103-5 .
Apportionment of expenditure in other elements
112-30(1A)
If you incur expenditure and only part of it relates to another element of the * cost base or * reduced cost base of a * CGT asset, that element includes that part of the expenditure that is reasonably attributable to that element.
Apportionment for CGT asset that was part of another asset
112-30(2)
The * cost base and * reduced cost base of a * CGT asset is apportioned if a * CGT event happens to some part of the asset, but not to the remainder of it.
Note:
The full list of CGT events is in section 104-5 .
112-30(3)
The * cost base for the * CGT asset representing the part to which the * CGT event happened is worked out using the formula:
| Cost base of the asset | × |
Capital proceeds for the CGT event
happening to the part Those capital proceeds plus the market value of the remainder of the asset |
The * reduced cost base is worked out similarly.
112-30(4)
The remainder of the * cost base and * reduced cost base of the asset is attributed to the part that remains.
Example:
You acquire a truck for $ 24,000 and sell its motor for $ 9,000. Suppose the market value of the remainder of the truck is $ 16,000.
Under subsection (3), the cost base of the motor is:
$ 24,000 × $ 9,000
$ 9,000 + $ 16,000= $ 8,640 Under subsection (4), the cost base of the remainder of the truck is:
$ 24,000 − $ 8,640 = $ 15,360
112-30(5)
However, an amount forming part of the * cost base or * reduced cost base of the asset is not apportioned if, on the facts, that amount is wholly attributable to the part to which the * CGT event happened or to the remaining part.
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