Income Tax Assessment Act 1997
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Hide history noteSECTION 122-140 What if the company undertakes to discharge a liability (disposal case)
Disposal of a CGT asset
122-140(1)
One of these requirements must be satisfied (for each partner) if:
(a) the partners *dispose of their interests in a *CGT asset; and
(b) the company undertakes to discharge one or more liabilities in respect of the interests in the asset.
(The *market value, or the *cost base, of an interest is worked out at the time of the disposal.)
| What amount the liabilities cannot exceed | ||
| Item | In this situation: | the liabilities cannot exceed: |
| 1 | A partner *acquired the interest on or after 20 September 1985 | The *cost base of the interest |
| . | ||
| 2 | A partner *acquired the interest before 20 September 1985 | The *market value of the interest |
Note:
There are rules for working out what are the liabilities in respect of an interest in an asset: see section 122-145 .
Disposal of all the assets of a business
122-140(2)
One of these requirements must be satisfied (for each partner) if:
(a) the partners *dispose of their interests in all the assets of a *business; and
(b) the company undertakes to discharge one or more liabilities in respect of the interests in the assets.
(The *market value, or the *cost base, of an interest is worked out at the time of the disposal.)
| What amount the liabilities cannot exceed | ||
| Item | In this situation: | the liabilities cannot exceed: |
| 1 | A partner *acquired all the interests on or after 20 September 1985 | The sum of the *market values of the partner ' s interests in *precluded assets and the *cost bases of the partner ' s interests in other assets |
| . | ||
| 2 | A partner *acquired all the interests before 20 September 1985 | The sum of the *market values of the interests |
| . | ||
| 3 | A partner *acquired at least one interest on or after 20 September 1985 and at least one before that day | For liabilities in respect of interests *acquired on or after that day - the sum of the *market values of the partner ' s interests in *precluded assets and the *cost bases of the partner ' s interests in other assets |
| For liabilities in respect of interests *acquired before that day - the sum of the market values of those interests |
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