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

Same-asset roll-over consequences for the company (disposal case)

SECTION 122-70   Consequences for the company (disposal case)  

122-70(1)    
There are these consequences for the company in a disposal case if you choose to obtain a roll-over. They are relevant for each *CGT asset (except a *precluded asset) that you *disposed of to the company.

Note:

A capital gain or loss from a precluded asset can be disregarded: see Subdivision 118-A .

Asset acquired on or after 20 September 1985

122-70(2)    
If you *acquired the asset on or after 20 September 1985:

(a) the first element of the asset ' s *cost base (in the hands of the company) is the asset ' s cost base when you disposed of it; and

(b) the first element of the asset ' s *reduced cost base (in the hands of the company) is the asset ' s reduced cost base when you disposed of it.

Note 1:

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

Note 2:

The reduced cost base may be modified for a roll-over happening after a demerger: see section 125-170 .

Asset acquired before 20 September 1985

122-70(3)    
If you *acquired the asset before 20 September 1985, the company is taken to have acquired it before that day.

Note:

A capital gain or loss from a CGT asset acquired before 20 September 1985 is generally disregarded: see Division 104 . This exemption is removed in some situations: see Division 149 .