Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/13)
Character Range: 2475235–2478021

3                                          A partner *acquired at least one interest on or after 20 September 1985 and at least one before that day  For liabilities in respect of interests *acquired on or after that day—the sum of the *market values of the partner's interests in *precluded assets and the *cost bases of the partner's interests in other assets
                                                                                                                                                     For liabilities in respect of interests *acquired before that day—the sum of the market values of those interests

122‑145  Rules for working out what a liability in respect of an interest in an asset is
 (1) These rules are relevant to working out what are the liabilities in respect of a partner's interests in an asset.
 (2) A liability incurred for the purposes of a *business that is not a liability in respect of interests in a specific asset or assets of the business is taken to be a liability in respect of the partner's interests in all the assets of the business.
Note: An example is a bank overdraft.
 (3) If a liability is in respect of both:
 (a) the partner's interests in one or more assets that the partner *acquired on or after 20 September 1985; and
 (b) the partner's interests in one or more assets that the partner acquired before that day;
the proportion of the liability that is in respect of the partner's interests that the partner acquired on or after that day is equal to:

Replacement‑asset roll‑over if partners dispose of a CGT asset

122‑150  Capital gain or loss disregarded
  If the partners choose a roll‑over for *disposing of their interests in a CGT asset to the company, a *capital gain or *capital loss any partner makes from the disposal is disregarded.

122‑155  Disposal of post‑CGT or pre‑CGT interests
 (1) If a partner *acquired all the partner's interests in the asset on or after 20 September 1985:
 (a) the first element of each *share's *cost base is the sum of the cost bases of the interests when the partner *disposed of them (less any liabilities the company undertakes to discharge in respect of them) divided by the number of the partner's shares; and
 (b) the first element of each share's *reduced cost base is worked out similarly.
Note 1: There are rules for working out what are the liabilities in respect of an interest in an asset: see section 122‑145.
Note 2: There are special indexation rules for roll‑overs: see Division 114.
 (2) If a partner *acquired all the partner's interests in the asset before 20 September 1985, the partner is taken to have acquired the *shares before that day.

122‑160  Disposal of both post‑CGT and pre‑CGT interests
 (1) If a partner *acquired some of the partner's interests in