Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

 View history note

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

 View history note

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

View history reference
 View history note

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)    

View history reference

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

 View history note

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.