Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_5:p10
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 10/10)
Character Range: 171956–174010

cost setting amount for the purposes of item 4 in the table in that section for each membership interest that the leaving entity holds in any of the other entities.

711‑15  Tax cost setting amount where no multiple exit

 (1) The *tax cost setting amount for each *membership interest in the leaving entity that *members of the old group held, where paragraph 711‑10(b) does not apply, is worked out by:
 (a) first, working out the old group's *allocable cost amount for the leaving entity in accordance with section 711‑20; and
 (b) next, if there is more than one class of membership interests in the leaving entity—allocating the allocable cost amount to each class in proportion to the *market value of all of the membership interests in the class; and
 (c) finally, allocating the result under paragraph (a) or (b) to each of the membership interests, or membership interests in the class, by dividing the result by the number of those membership interests.

Rights and options to acquire membership interests

 (2) For the purposes of this section, if at the leaving time a *member of the old group holds a right or option (including a contingent right or option), created or issued by the leaving entity, to acquire a *membership interest in the leaving entity, that right or option is treated as if:
 (a) it were a membership interest in the leaving entity; and
 (b) it were of a different class than any other membership interest in the leaving entity.

711‑20  What is the old group's allocable cost amount for the leaving entity?

 (1) Work out the old group's allocable cost amount for the leaving entity in this way:

Working out the old group's allocable cost amount for the leaving entity
Step                                                                      What the step requires                                                                                                                                                                                                                                       Purpose of the step