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  

When is a roll-over available

SECTION 122-37   Rules for working out what a liability in respect of an asset is  

122-37(1)    
These rules are relevant to working out what are the liabilities in respect of an asset.

122-37(2)    
A liability incurred for the purposes of a *business that is not a liability in respect of a specific asset or assets of the business is taken to be a liability in respect of all the assets of the business.

Note:

An example is a bank overdraft.

122-37(3)    

If a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is equal to:

The *market value of the asset                   The total of the market values of all the assets that the liability is in respect of