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  

Same-asset roll-over consequences for the company (creation case)

SECTION 122-205   Consequences for the company (creation case)  

122-205(1)  
There are these consequences for the company in a creation case if the partners choose to obtain a roll-over.

122-205(2)  
The first element of the created asset's *cost base (in the hands of the company) is the applicable amount from this table.


Creation case
Event No. Applicable amount
D1 the total *incidental costs incurred that relate to the trigger event
.
D2 the total expenditure incurred to grant the option
.
D3 the total expenditure incurred to grant the right
.
F1 the total expenditure incurred on the grant, renewal or extension of the lease

The expenditure can include a transfer of property: see section 103-5 .

122-205(3)  
The first element of the created asset's *reduced cost base (in the hands of the company) is worked out similarly.


 

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