Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:3_1:p3
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 3/3)
Character Range: 47275–48274

occurred in relation to different acquisitions.

Reduction in revenue etc. asset's tax cost setting amount

 (6) The revenue etc. asset's *tax cost setting amount (after any application of section 705‑40, 705‑45 or 705‑50) is instead the amount that would apply if, in working out the step 1 amount in the table in section 705‑60, the *cost base and *reduced cost base of the *membership interest were reduced by the sum of the loss of pre‑CGT status adjustment amounts for the membership interest and all other membership interests that have loss of pre‑CGT status adjustment amounts.

Limit on reduction

 (7) However, the reduction only takes place to the extent that it does not result in the asset's *tax cost setting amount being less than the joining entity's *terminating value for the asset.

Note: The reduction under this section is converted into a capital loss available over a period of 5 income years starting with the income year in which the joining time occurs: see CGT event L1.