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 4/7)
Character Range: 318076–320824

element of each other *share's *reduced cost base is worked out similarly.

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

Replacement‑asset roll‑over for a creation case

122‑65  Creation of asset

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

 (2) The first element of each *share's *cost base 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 *incidental costs you incurred that relate to the trigger event
D2             the expenditure you incurred to grant the option
D3             the expenditure you incurred to grant the right
F1             the expenditure you incurred on the grant, renewal or extension of the lease

  The expenditure can include a transfer of property: see section 103‑5.

Example: Bill grants a licence (CGT event D1) to Tiffin Pty Ltd (a company he owns). The company issues him with 2 additional shares. He incurs legal expenses of $1,000 to grant the licence.

 Bill's cost base for each of the shares is $500.

Same‑asset roll‑over consequences for the company (disposal case)

122‑70  Consequences for the company (disposal case)

 (1) There are these consequences for the company in a disposal case if you choose to obtain a roll‑over. They are relevant for each *CGT asset (except a *precluded asset) that you *disposed of to the company.

Note: A capital gain or loss from a precluded asset can be disregarded: see Subdivision 118‑A.

Asset acquired on or after 20 September 1985

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

 (a) the first element of the asset's *cost base (in the hands of the company) is the asset's cost base when you disposed of it; and

 (b) the first element of the asset's *reduced cost base (in the hands of the company) is the asset's reduced cost base when you disposed of it.

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

Asset acquired before 20 September 1985

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

Note: A capital gain or loss from a CGT asset acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.

Same‑asset roll‑over consequences for the company (creation case)

122‑75  Consequences for the company (creation case)

 (1) There are these consequences for the company in a creation