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 for a creation case

SECTION 122-195   Creation of asset  

122-195(1)    
If the partners choose a roll-over, a *capital gain or *capital loss any partner makes from the trigger event is disregarded.

122-195(2)    
The first element of the partner's *cost base of each *share is the amount applicable under this table divided by the number of shares. The first element of each share's *reduced cost base is worked out similarly.

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

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