Draft Taxation Determination
TD 1999/D60
Income tax: capital gains: if a CGT asset is owned by partners in partnership, how do the replacement asset tests in Subdivision 124-B of the Income Tax Assessment Act 1997 apply?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 2000/43.
FOI status:
draft only - for commentPreamble
Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. The replacement asset tests apply at the partner level and not at the level of the partnership.
2. An interest in an asset of a partnership is itself a CGT asset as defined in section 108-5 of the Income Tax Assessment Act 1997: see paragraph 108-5(2)(c). Each individual partner's interest in each asset of the partnership is the relevant CGT asset for a roll-over under Subdivision 124-B. A partner's interest in each partnership asset, for instance, may be compulsorily acquired by an Australian government agency in terms of paragraph 124-70(1)(a).
3. Each individual partner needs to satisfy the tests for their particular interest in each partnership CGT asset to qualify for a roll-over under Subdivision 124-B.
Your comments
We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.
Comments by Date: | 1 September 1999 |
Contact officer details have been removed following publication of the final ruling. |
Commissioner of Taxation
4 August 1999
References
ATO references:
NO 99/10859-2
BO CGT Involuntary Disposal summit 1999
Subject References:
Asset
CGT asset
interests
interests in partnership assets
partners
partnership
replacement asset
roll-over
Legislative References:
ITAA 1997 108-5
108-5(2)(c)
124-70(1)(a)
ITAA 1997 Subdivision 124-B