Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

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

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

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Replacement-asset roll-over if you dispose of all the assets of a business

SECTION 122-45   Disposal of all the assets of a business  

122-45(1)    
If you choose a roll-over for *disposing of all the assets of a *business to the company, a *capital gain or *capital loss you make from each of the assets of the business is disregarded.

122-45(2)    
The other consequences relate to the *shares you receive and depend on when you *acquired the assets of the *business.

Note 1:

There are 3 possible cases:

  • • you acquired all the assets on or after 20 September 1985: see section 122-50 ;
  • • you acquired all the assets before that day: see section 122-55 ;
  • • you acquired some of the assets on or after that day: see section 122-60 .

    • Note 2:

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

    Note 3:

    There are other consequences for you and the company if you dispose of trading stock: see Division 70 .

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