Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 23/59)
Character Range: 2589705–2592296

Glenn exchanges 2 shares with cost bases of $10 and $11 respectively for one new share. The cost base of the new share is $21.
Example 3: Wayne exchanges 1 share with a cost base of $9 for share A with a market value of $5 and share B with a market value of $10. The cost base of share A is $3 and the cost base of share B is $6.

124‑790  Partial roll‑over
 (1) The original interest holder can obtain only a partial roll‑over if its *capital proceeds for its original interest include something (the ineligible proceeds) other than its replacement interest. There is no roll‑over for that part (the ineligible part) of its original interest for which it received ineligible proceeds.
 (2) The *cost base of the ineligible part is that part of the cost base of your original interest as is reasonably attributable to it.
Example: Ken owns 100 shares in Aim Ltd. Those shares have a cost base of $2.
 Ken accepts an offer from LBZ Ltd to acquire those shares. The offer is 1 share in LBZ (market value $4) plus $1 for each Aim share.
 Ken chooses the roll‑over to the extent that he can.
 The cost base of the ineligible part is [$100  $200]  $500  $40.
 Ken makes a capital gain of $100  $40  $60.

124‑795  Exceptions
 (1) You cannot obtain the roll‑over if, just before you stop owning your original interest, you are a foreign resident unless, just after you *acquire your replacement interest, the replacement interest is *taxable Australian property.
 (2) You cannot obtain the roll‑over if:
 (a) any *capital gain you might make from your replacement interest would be disregarded (except because of a roll‑over); or
 (b) you and the acquiring entity are members of the same *wholly‑owned group just before you stop owning your original interest and the acquiring entity is a foreign resident.
Example: An example of a capital gain or loss being disregarded as mentioned in paragraph (2)(a) is because the asset is trading stock.
Note: A roll‑over may be available under Subdivision 126‑B in the circumstances mentioned in paragraph (2)(b).
 (3) You cannot obtain the roll‑over for the *CGT event happening in relation to the exchange of your original interest if you can choose a roll‑over under Division 122 or 615 for that event.
Note: Division 122 deals with the disposal of assets to a wholly‑owned company, and Division 615 deals with business restructures.
 (4) You cannot obtain the roll‑over for the *CGT event happening in relation to the exchange of your qualifying interest if:
 (a) the replacement entity makes a choice to that effect under this subsection; and
 (b)