Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/10)
Character Range: 340534–343210

of those interests) divided by the number of the other shares.

 (4) The market value of an interest in an asset is worked out when the partner *disposed of it. The *cost base or *reduced cost base of an interest is worked out at the same time.

122‑190  Interests acquired before and after 20 September 1985

 (1) If a partner *acquired some of the interests in the assets on or after 20 September 1985, the partner is taken to have acquired a whole number of the *shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares) does not exceed:

 • the total of the market values of the partner's interests in the assets (except any *precluded assets) that the partner acquired before that day, less any liabilities the company undertakes to discharge in respect of those interests;

expressed as a percentage of:

 • the total of the market values of all the partner's interests in the assets, less any liabilities the company undertakes to discharge in respect of those interests.

 (2) The first element of the partner's *cost base of each other *share is the sum of the market values of the partner's interests in the *precluded assets and the cost bases of the partner's interests in the other assets that the partner *acquired on or after that day (less any liabilities the company undertakes to discharge in respect of all of those interests) divided by the number of the other shares.

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

 (3) The first element of the partner's *reduced cost base of each other *share is worked out similarly.

 (4) The market value of an interest in an asset is worked out when the partner *disposed of it. The *cost base or *reduced cost base of an interest in an asset is worked out at the same time.

Replacement‑asset roll‑over for a creation case

122‑195  Creation of asset

 (1) If the partners choose a roll‑over, a *capital gain or *capital loss any partner makes from the trigger event is disregarded.

 (2) The first element of the partner's *cost base of each *share is the amount applicable under this table divided by the number of shares. The first element of each share's *reduced cost base is worked out similarly.

Creation case
Event No.      Applicable amount
D1             the partner's share of the *incidental costs incurred that relate to the trigger event
D2             the partner's share of the expenditure incurred to grant the option
D3             the partner's share of the expenditure incurred to grant the right
F1             the partner's share of the expenditure incurred on the