Income Tax Assessment Act 1997
There are these consequences (in most cases) if you can obtain a roll-over when your ownership of a *CGT asset (the original asset ) ends and you *acquire one or more CGT assets (the new assets ) in a situation covered by this Division.
A *car, motor cycle or similar vehicle must not be one of the new assets.
A *capital gain or a *capital loss you make from the original asset is disregarded. 124-10(3)
If you *acquired the original asset on or after 20 September 1985, the first element of each new asset ' s *cost base is:
|The original asset
s cost base
(worked out when your ownership of it ended)
Number of new assets
The first element of each new asset ' s *reduced cost base is worked out similarly.
In some cases the amount you paid to acquire the new asset also forms part of the first element: see Subdivision 124-D (about strata title conversion).
There are modifications to the consequences in Subdivision 124-B (about compulsory acquisition, loss or destruction), Subdivision 124-C (about statutory licences), Subdivision 124-J (about Crown leases) and Subdivision 124-L (about prospecting and mining).
No other elements of the cost base of the new asset are affected by the roll-over.
There are special indexation rules for roll-overs: see Division 114 .
The reduced cost base may be modified for a roll-over happening after a demerger: see section 125-170 .
If you *acquired the original asset before 20 September 1985, you are taken to have acquired each new asset before that day.
A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104 . This exemption is removed in some situations: see Division 149 .124-10(5)
However, subsection (4) is taken never to have applied to a *share to which subsection 104-195(6) applies (CGT event J4).
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