Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 112 - Modifications to cost base and reduced cost base  

Subdivision 112-C - Replacement-asset roll-overs  

SECTION 112-110  

112-110   How is the cost base of the replacement asset modified?  
If you acquired the original asset on or after 20 September 1985:

(a) the first element of the replacement asset ' s cost base is replaced by the original asset ' s cost base at the time you acquired the replacement asset; and

(b) the first element of the replacement asset ' s reduced cost base is replaced by the original asset ' s reduced cost base at the time you acquired the replacement asset.

Note 1:

Some replacement-asset roll-overs involve other rules that affect the cost base or reduced cost base of the replacement asset.

Note 2:

If you acquired the original asset before 20 September 1985, you are taken to have acquired the replacement asset before that day: see Subdivision 124-A .

Note 3:

The reduced cost base may be further modified if the replacement asset roll-over happens after a demerger: see section 125-170 .