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.
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.
The *cost base for the *CGT asset representing the part to which the *CGT event happened is worked out using the formula:
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.
View history note
Hide history noteIf 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
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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