Income Tax Assessment Act 1997
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Hide history noteSECTION 124-790 Partial roll-over 124-790(1)
The original interest holder can obtain only a partial roll-over if its *capital proceeds for its original interest include something (the ineligible proceeds ) other than its replacement interest. There is no roll-over for that part (the ineligible part ) of its original interest for which it received ineligible proceeds.
124-790(2)
The *cost base of the ineligible part is that part of the cost base of your original interest as is reasonably attributable to it.
Example:
Ken owns 100 shares in Aim Ltd. Those shares have a cost base of $2.
Ken accepts an offer from LBZ Ltd to acquire those shares. The offer is 1 share in LBZ (market value $4) plus $1 for each Aim share.
Ken chooses the roll-over to the extent that he can.
The cost base of the ineligible part is [ $100 × $200 ] ÷ $500 = $40.
Ken makes a capital gain of $100 − $40 = $60.
124-790(3)
(Repealed by No 89 of 2000)
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