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-B - Disposal or creation of assets by partners to a wholly-owned company  

Replacement-asset roll-over if partners dispose of a CGT asset

SECTION 122-155   Disposal of post-CGT or pre-CGT interests  

122-155(1)  


If a partner *acquired all the partner's interests in the asset on or after 20 September 1985:


(a) the first element of each *share's *cost base is the sum of the cost bases of the interests when the partner *disposed of them (less any liabilities the company undertakes to discharge in respect of them) divided by the number of the partner's shares; and


(b) the first element of each share's *reduced cost base is worked out similarly.

Note 1:

There are rules for working out what are the liabilities in respect of an interest in an asset: see section 122-145 .

Note 2:

There are special indexation rules for roll-overs: see Division 114 .

122-155(2)  


If a partner *acquired all the partner's interests in the asset before 20 September 1985, the partner is taken to have acquired the *shares before that day.

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.