Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/7)
Character Range: 310854–313605

3                                          You *acquired at least one asset on or after 20 September 1985 and at least one before that day  For liabilities in respect of assets you *acquired on or after that day—the sum of the market values of the *precluded assets and the *cost bases of the other assets;

                                                                                                                                            For liabilities in respect of assets you *acquired before that day—the sum of the market values of those assets

122‑37  Rules for working out what a liability in respect of an asset is

 (1) These rules are relevant to working out what are the liabilities in respect of an asset.

 (2) A liability incurred for the purposes of a *business that is not a liability in respect of a specific asset or assets of the business is taken to be a liability in respect of all the assets of the business.

Note: An example is a bank overdraft.

 (3) If a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is equal to:

Replacement‑asset roll‑over if you dispose of a CGT asset

122‑40  Disposal of a CGT asset

 (1) If you choose a roll‑over, a *capital gain or *capital loss you make from the trigger event is disregarded.

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

 (a) the first element of each *share's *cost base is the asset's cost base when you *disposed of it (less any liabilities the company undertakes to discharge in respect of it) divided by the number of shares; and

 (b) the first element of each share's *reduced cost base is worked out similarly.

Note 1: There are rules for working out what are the liabilities in respect of an asset: see section 122‑37.

Note 2: There are special indexation rules for roll‑overs: see Division 114.

 (3) If you *acquired the asset before 20 September 1985, you are taken to have acquired the *shares before that day.

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

122‑45  Disposal of all the assets of a business

 (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.

 (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