Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:4_3
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 4 cl 3
Character Range: 35052–37124

3                                      less than or equal to its *reduced cost base                         its reduced cost base

Allocating partnership cost pool to partnership assets that are not retained cost base assets

 (3) Work out the *tax cost setting amounts for the assets mentioned in paragraph (1)(c) by applying sections 705‑35, 705‑40 and 705‑45 to those assets, as if:
 (a) the partnership were, at the joining time, the joining entity mentioned in those sections; and
 (b) the assets of the partnership were the assets covered by subsection 713‑235(3); and
 (c) the allocable cost amount mentioned in paragraph 705‑35(1)(a) were the partnership cost pool.

 (4) For the purposes of this section, section 104‑510 (CGT event L3) applies as if the group's allocable cost amount for the entity mentioned in that section were the partnership cost pool.

713‑245  Partnership joins group—pre‑CGT factor for partnership asset

 (1) The *pre‑CGT factor for each asset covered by subsection 713‑235(3) is worked out under subsections (2) and (3) (instead of subsection 705‑125(3)).

 (2) Firstly, identify the *partnership cost setting interests (the pre‑CGT interests) in the partnership, relating to assets of the partnership, for which there is a *pre‑CGT factor at the joining time.

Note: The pre‑CGT factor for such a partnership cost setting interest is worked out at the time the partner holding the interest became a subsidiary member of the group (whether that time is the joining time or was an earlier time).

 (3) Secondly, work out the *pre‑CGT factor for each asset covered by subsection 713‑235(3) in this way:

      Partnership assets' pre‑CGT factor
           Step 1. For each pre‑CGT interest, multiply its *market value at the joining time by its *pre‑CGT factor.
           Step 2. Add up all the results of step 1.
           Step 3. Add up the *market values of all the assets of the partnership at the joining time.
           Step 4. Divide the result of step 2 by the result of step 3.
[The next Subdivision is Subdivision 713‑L.]