Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

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History

Part 3-3 inserted by No 46 of 1998.

Division 122 - Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company  

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History

Div 122 inserted by No 46 of 1998.

Subdivision 122-A - Disposal or creation of assets by an individual or trustee to a wholly-owned company  

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Subdiv 122-A heading substituted by No 173 of 2000.

When is a roll-over available

SECTION 122-15  

122-15   Disposal or creation of assets - wholly-owned company  
If you are an individual or a trustee, you can choose to obtain a roll-over if one of the *CGT events (the trigger event ) specified in this table happens involving you and a company in the circumstances set out in sections 122-20 to 122-35 .

Relevant *CGT events
Event No.	What you do
A1	*Dispose of a CGT asset, or all the assets of a business, to the company
.
D1	Create contractual or other rights in the company
.
D2	Grant an option to the company
.
D3	Grant the company a right to income from mining
.
F1	Grant a lease to the company, or renew or extend a lease

Note 1:

The roll-over starts at section 122-40 .

Note 2:

Section 103-25 tells you when you have to make the choice.

Note 3:

A roll-over may also be available under Subdivision 328-G (Restructures of small businesses).

Example:

Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.

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History

S 122-15 amended by No 18 of 2016, s 3 and Sch 1 item 3, by inserting note 3, applicable to:

(a) the transfer of a depreciating asset if the balancing adjustment event arising from the transfer occurs on or after 1 July 2016; or

(b) the transfer of trading stock or a revenue asset if the transfer occurs on or after 1 July 2016; or

(c) the transfer of a CGT asset (other than a depreciating asset, trading stock or a revenue asset) if the CGT event arising from the transfer occurs on or after 1 July 2016.

S 122-15 inserted by No 46 of 1998.

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