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-A - Disposal or creation of assets by an individual or trustee to a wholly-owned company  

Replacement-asset roll-over if you dispose of all the assets of a business

SECTION 122-60   Assets acquired before and after 20 September 1985  

122-60(1)    

If you *acquired some of the assets on or after 20 September 1985, you are taken to have acquired a whole number of the *shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares) does not exceed:

• the total of the *market values of the assets (except any *precluded assets) that you acquired before that day, less any liabilities the company undertakes to discharge in respect of those assets;

expressed as a percentage of:

• the total of the market values of all the assets, less any liabilities the company undertakes to discharge in respect of those assets.

122-60(2)    

The first element of each other *share's *cost base is the sum of the *market values of the *precluded assets and the cost bases of the other assets that you *acquired on or after that day (less any liabilities the company undertakes to discharge in respect of all of those assets) divided by the number of those other shares.

Note:

There are special indexation rules for roll-overs: see Division 114 .

122-60(3)    
The first element of each other *share's *reduced cost base is worked out similarly.

122-60(4)    

The *market value of an asset is worked out when you *disposed of it. The *cost base or *reduced cost base of an asset is worked out at the same time.