Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-P - Exchange of a membership interest in an MDO for a membership interest in another MDO  

Operative provisions

SECTION 124-985   What the roll-over is for post-CGT interests  

124-985(1)    
A *capital gain the entity makes from an original interest *acquired on or after 20 September 1985 is disregarded.

124-985(2)    
The entity works out the first element of the *cost base of each replacement interest the entity received as a result of the exchange by reasonably attributing to it the cost base (or the part of it) of the entity ' s original interest for which it was exchanged and for which the entity obtained the roll-over.

124-985(3)    
In applying subsection (2), the entity reduces (but not below zero) the *cost base of the original interest (just before stopping owning it) by so much of that cost base as is attributable to an ineligible part (see section 124-990 ).

124-985(4)    
The first element of the *reduced cost base of a replacement interest is worked out similarly.