Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 122-65 Creation of asset 122-65(1)
If you choose a roll-over, a *capital gain or *capital loss you make from the trigger event is disregarded.
122-65(2)
The first element of each *share's *cost base is the amount applicable under this table divided by the number of shares. The first element of each share's *reduced cost base is worked out similarly.
| Creation case | |
| Event No. | Applicable amount |
| D1 | the *incidental costs you incurred that relate to the trigger event |
| . | |
| D2 | the expenditure you incurred to grant the option |
| . | |
| D3 | the expenditure you incurred to grant the right |
| . | |
| F1 | the expenditure you incurred on the grant, renewal or extension of the lease |
The expenditure can include a transfer of property: see section 103-5 .
Example:
Bill grants a licence (CGT event D1) to Tiffin Pty Ltd (a company he owns). The company issues him with 2 additional shares. He incurs legal expenses of $1,000 to grant the licence.
Bill's cost base for each of the shares is $500.
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