Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 3/13)
Character Range: 2480144–2482713

Division 70.

122‑180  All interests acquired on or after 20 September 1985
 (1) If a partner *acquired all of the partner's interests in the assets of the *business on or after 20 September 1985:
 (a) the first element of the partner's *cost base of each *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 (less any liabilities the company undertakes to discharge in respect of all of those interests) divided by the number of the partner's shares; and
 (b) the first element of the partner's *reduced cost base of each *share is worked out similarly.
Note 1: There are rules for working out what are the liabilities in respect of interests: see section 122‑145.
Note 2: There are special indexation rules for roll‑overs: see Division 114.
 (2) 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.

122‑185  All interests acquired before 20 September 1985
 (1) A partner is taken to have *acquired all of the *shares before 20 September 1985 if the partner acquired all the partner's interests in the assets of the *business before that day and none of the assets is a *precluded asset.
 (2) However, if at least one of the assets is a *precluded asset, 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 that are not *precluded assets, 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 the partner's interests in all the assets, less any liabilities the company undertakes to discharge in respect of those interests.
Note: There are rules for working out what are the liabilities in respect of an interest: see section 122‑145.
 (3) The first element of the partner's *cost base and *reduced cost base of each other *share is the total of the *market values of the partner's interests in the *precluded assets (less any liabilities the company undertakes to discharge in respect 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