Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 15/18)
Character Range: 2836334–2838873

of the new owner at all times when the original asset was the original owner's active asset; and
 (c) the new asset had not been the active asset of the new owner at all times when the original asset was not the original owner's active asset.
Note 1: Former Subdivision 124‑O provided a roll‑over for certain CGT assets that came to an end as a result of an FSR transition.
Note 2: If this subsection applies to a CGT asset, then section 152‑115 (which is about continuing time periods) will apply for the 15‑year exemption.

Marriage or relationship breakdowns
 (2) If you were the transferee of a *CGT asset for which there has been a roll‑over under Subdivision 126‑A, then you may choose that the active asset test in section 152‑35 applies as if:
 (a) you had acquired the asset when the transferor acquired the asset; and
 (b) the asset had been an *active asset of yours at all times when the asset was an active asset of the transferor; and
 (c) the asset had not been an active asset of yours at all times when the asset was not an active asset of the transferor.
Note 1: Section 103‑25 tells you when the choice must be made.
Note 2: There is a roll‑over under Subdivision 126‑A if CGT assets are transferred because of a marriage or relationship breakdown.
Note 3: If you don't make the choice, the time of acquisition is simply the time of the transfer.
Note 4: Making the choice here has certain consequences for the 15‑year exemption: see section 152‑115.

Treatment of passively held CGT assets

152‑47  Spouses or children taken to be affiliates for certain passively held CGT assets
 (1) This section applies if:
 (a) one entity (the asset owner) owns a *CGT asset (whether the asset is tangible or intangible); and
 (b) either:
 (i) the asset is used, or held ready for use, in the course of carrying on a *business in an income year by another entity (the business entity); or
 (ii) the asset is inherently connected with a business that is carried on in an income year by another entity (the business entity); and
 (c) the business entity is not (apart from this section) an *affiliate of, or *connected with, the asset owner.
Note: The meaning of connected with an entity is affected by section 152‑78.
 (2) For the purposes of this Subdivision, in determining whether the business entity is an *affiliate of, or is *connected with, the asset owner, take the following to be affiliates of an individual:
 (a) a *spouse of the individual;
 (b) a *child of the individual, being a child who is under 18 years.
 (3) If an