Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p17
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 17/19)
Character Range: 41525–44136

*CGT event during the year for which you choose a small business roll‑over, you choose one or more *CGT assets as replacements (the replacement asset); and
 (c) the replacement asset satisfies the conditions set out in section 152‑420.

Note: Paragraph (b) is an exception to the general rule about choices in section 103‑25.

152‑415  What the roll‑over consists of

  If you choose the roll‑over, so much of the *capital gain that would have remained apart from the roll‑over as does not exceed the total of the first and second elements of the *cost base of the replacement asset is disregarded.

Note: If there is an amount of the capital gain that cannot be so disregarded, you make a capital gain equal to that amount.

Example: The original capital gain was $100. You have reduced it to $25 under other concessions (apart from the roll‑over). If the total of the first and second elements of the cost base of the replacement asset is $20, you can disregard $20 under this section, leaving a final capital gain of $5.

152‑420  Replacement asset conditions

 (1) For an asset to be eligible to be a replacement asset, you must *acquire it during the period starting one year before, and ending 2 years after, the happening of the last *CGT event in the income year for which you obtain the small business roll‑over.

Extension of time if all reasonable steps taken

 (2) This time limit does not apply to the extent that your *capital proceeds for the *CGT event are increased under subsection 116‑45(2) after that time is up. Instead, you have until 12 months after you receive those additional proceeds to *acquire a replacement asset the first and second elements of the *cost base of which are at least equal to the value of those additional proceeds.

Note 1: If you do not acquire a replacement asset with a sufficiently large cost base within the new time limit, your roll‑over will be reduced accordingly under section 152‑415.

Note 2: Section 116‑45 applies if you do not receive your capital proceeds despite having taken all reasonable steps to get them.

 (3) The Commissioner may extend the time limits under subsections (1) and (2).

Type of replacement asset allowed

 (4) A replacement asset must be an *active asset when it is *acquired or an active asset by the end of 2 years after the last *CGT event during the year for which you choose a small business roll‑over.

Note: If a replacement asset is an active asset and its status subsequently changes, you may make a capital gain: see section 104‑185 (CGT event J2). Special rules apply if you die: see section 152‑425.

 (5) If a