Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-3
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CAPITAL GAINS AND LOSSES: SPECIAL TOPICS
Division 124
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Replacement-asset roll-overs
Subdivision 124-R
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Water entitlements
Replacement case
SECTION 124-1115 Roll-over consequences - partial roll-over 124-1115(1)
You can obtain only a partial roll-over in relation to an original entitlement if the *capital proceeds for that entitlement includes something (the ineligible proceeds ) other than a new entitlement or new entitlements. There is no roll-over for that part (the ineligible part ) of the entitlement for which you received the ineligible proceeds.
124-1115(2)
The *cost base of the ineligible part is that part of the cost base of the original entitlement as is reasonably attributable to the ineligible part.
124-1115(3)
The *reduced cost base of the ineligible part is worked out similarly.
124-1115(4)
In working out what is reasonably attributable to the ineligible part for the purposes of subsections (2) and (3), have regard to the *market value of the new entitlement relative to the market value of the ineligible proceeds.
124-1115(5)
If the roll-over is under subsection 124-1105(2) , for the purposes of sections 124-1120 and 124-1130 , for each original entitlement that has an ineligible part:
(a) reduce the *cost base of that entitlement (just before you stopped owning it) by so much of that cost base as is attributable to that ineligible part; and
(b) reduce the *reduced cost base of that entitlement similarly.
View history note
Hide history noteSECTION 124-1115 Roll-over consequences - partial roll-over 124-1115(1)
You can obtain only a partial roll-over in relation to an original entitlement if the *capital proceeds for that entitlement includes something (the ineligible proceeds ) other than a new entitlement or new entitlements. There is no roll-over for that part (the ineligible part ) of the entitlement for which you received the ineligible proceeds.
Note:
If the roll-over is under subsection 124-1105(2) , some or all of the original entitlements may each have an ineligible part.
124-1115(2)
The *cost base of the ineligible part is that part of the cost base of the original entitlement as is reasonably attributable to the ineligible part.
124-1115(3)
The *reduced cost base of the ineligible part is worked out similarly.
124-1115(4)
In working out what is reasonably attributable to the ineligible part for the purposes of subsections (2) and (3), have regard to the *market value of the new entitlement relative to the market value of the ineligible proceeds.
124-1115(5)
If the roll-over is under subsection 124-1105(2) , for the purposes of sections 124-1120 and 124-1130 , for each original entitlement that has an ineligible part:
(a) reduce the *cost base of that entitlement (just before you stopped owning it) by so much of that cost base as is attributable to that ineligible part; and
(b) reduce the *reduced cost base of that entitlement similarly.
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