Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 2/3)
Character Range: 184797–187458

part of it relates to another element of the *cost base or *reduced cost base of a *CGT asset, that element includes that part of the expenditure that is reasonably attributable to that element.

Apportionment for CGT asset that was part of another asset

 (2) The *cost base and *reduced cost base of a *CGT asset is apportioned if a *CGT event happens to some part of the asset, but not to the remainder of it.

Note: The full list of CGT events is in section 104‑5.

 (3) The *cost base for the *CGT asset representing the part to which the *CGT event happened is worked out using the formula:

  The *reduced cost base is worked out similarly.

 (4) The remainder of the *cost base and *reduced cost base of the asset is attributed to the part that remains.

Example: You acquire a truck for $24,000 and sell its motor for $9,000. Suppose the market value of the remainder of the truck is $16,000.

 Under subsection (4), the cost base of the motor is:

 Under subsection (5), the cost base of the remainder of the truck is:

 (5) However, an amount forming part of the *cost base or *reduced cost base of the asset is not apportioned if, on the facts, that amount is wholly attributable to the part to which the *CGT event happened or to the remaining part.

112‑35  Assumption of liability rule

  If you *acquire a *CGT asset from another entity that is subject to a liability, the first element of your *cost base and *reduced cost base of the asset includes the amount of the liability you assume.

Example: You acquire a block of land for $150,000. You pay $50,000 and assume a liability for an outstanding mortgage of $100,000.

Note: The first element of cost base is dealt with in subsection 110‑30(2). The first element of reduced cost base is the same: see subsection 110‑55(2).

Subdivision 112‑B—Finding tables for special rules

Table of sections

112‑40 Effect of this Subdivision
112‑45 CGT events
112‑50 Main residence
112‑55 Effect of you dying
112‑60 Bonus shares or units
112‑65 Rights
112‑70 Convertible notes
112‑75 Employee share schemes
112‑80 Leases
112‑85 Options
112‑87 Residency
112‑90 An asset stops being a pre‑CGT asset
112‑95 Transfer of net capital losses within wholly‑owned groups of companies
112‑97 Modifications outside this Part and Part 3‑3

112‑40  Effect of this Subdivision

 (1) This Subdivision is a *Guide.

Note: In interpreting an operative provision, a Guide may be considered only for limited purposes: see section 950‑150.

 (2) It sets out which element of the cost base or reduced cost base of a CGT asset is affected by various situations.

112‑45  CGT events

CGT events
Event