Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 122 - Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company  

Subdivision 122-A - Disposal or creation of assets by an individual or trustee to a wholly-owned company  

When is a roll-over available

SECTION 122-15  

122-15   Disposal or creation of assets - wholly-owned company  
If you are an individual or a trustee, you can choose to obtain a roll-over if one of the *CGT events (the trigger event ) specified in this table happens involving you and a company in the circumstances set out in sections 122-20 to 122-35 .


Relevant *CGT events
Event No. What you do
A1 *Dispose of a CGT asset, or all the assets of a business, to the company
.
D1 Create contractual or other rights in the company
.
D2 Grant an option to the company
.
D3 Grant the company a right to income from mining
.
F1 Grant a lease to the company, or renew or extend a lease

Note 1:

The roll-over starts at section 122-40 .

Note 2:

Section 103-25 tells you when you have to make the choice.

Note 3:

A roll-over may also be available under Subdivision 328-G (Restructures of small businesses).

Example:

Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.