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-B - Disposal or creation of assets by partners to a wholly-owned company  

Replacement-asset roll-over if partners dispose of a CGT asset

SECTION 122-155   Disposal of post-CGT or pre-CGT interests  

122-155(1)    
If a partner *acquired all the partner's interests in the asset on or after 20 September 1985:

(a) the first element of each *share's *cost base is the sum of the cost bases of the interests when the partner *disposed of them (less any liabilities the company undertakes to discharge in respect of them) divided by the number of the partner's shares; and

(b) the first element of each share's *reduced cost base is worked out similarly.

Note 1:

There are rules for working out what are the liabilities in respect of an interest in an asset: see section 122-145 .

Note 2:

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

122-155(2)    
If a partner *acquired all the partner's interests in the asset before 20 September 1985, the partner is taken to have acquired the *shares before that day.