Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_10:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 2/7)
Character Range: 167501–170138

(a) the money you paid, or are required to pay, in respect of *acquiring it; and

 (b) the market value of any other property you gave, or are required to give, in respect of acquiring it (worked out as at the time of the acquisition).

Note 1: There are special rules for working out when you are required to pay money or give other property: see section 103‑15.

Note 2: This element is replaced with another amount in many situations: see Division 112.

 (3) The second element is the *incidental costs you incurred:

 (a) to *acquire the *CGT asset; and

 (b) that relate to the *CGT event.

  These costs can include giving property: see section 103‑5.

Note: There is one situation to do with options in which the incidental costs relating to the CGT event are modified: see section 112‑85.

 (4) The third element is the non‑capital costs of ownership of the *CGT asset you incurred (but only if you *acquired the asset after 20 August 1991). These costs include:

 (a) interest on money you borrowed to acquire the asset; and

 (b) costs of maintaining, repairing or insuring it; and

 (c) rates or land tax, if the asset is land; and

 (d) interest on money you borrowed to refinance the money you borrowed to acquire the asset; and

 (e) interest on money you borrowed to finance the capital expenditure you incurred to increase the asset's value.

  These costs can include giving property: see section 103‑5.

Note: This element does not apply to personal use assets or collectables: see sections 108‑17 and 108‑30.

 (5) The fourth element is capital expenditure you incurred to increase the asset's value. However, the expenditure must be reflected in the state or nature of the asset at the time of the *CGT event. (The expenditure can include giving property: see section 103‑5.)

Note: There are 3 situations involving leases in which this element is modified: see section 112‑80.

 (6) The fifth element is capital expenditure that you incurred to establish, preserve or defend your title to the asset, or a right over the asset. (The expenditure can include giving property: see section 103‑5.)

What does not form part of the cost base

 (7) Expenditure does not form part of the second or third element of the cost base to the extent that you have deducted or can deduct it.

 (8) Expenditure does not form part of any element of the cost base to the extent of any amount you have received as *recoupment of it, except so far as the amount is included in your assessable income.

110‑30  Cost base of partnership assets

 (1) Expenditure does not form part of the second or third element of