Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 6/10)
Character Range: 345408–348227

the original asset were acquired by the partners before that day.

 (5) The first element of the *cost base of the separate asset that the company is taken to have *acquired on or after 20 September 1985 is the sum of the cost bases of the partners' interests in the original asset that they acquired on or after that day.

Note: There are special indexation rules for roll‑overs: see Division 114.

 (6) The first element of its *reduced cost base is worked out similarly.

Same‑asset roll‑over consequences for the company (creation case)

122‑205  Consequences for the company (creation case)

 (1) There are these consequences for the company in a creation case if the partners choose to obtain a roll‑over.

 (2) The first element of the created asset's *cost base (in the hands of the company) is the applicable amount from this table.

Creation case
Event No.      Applicable amount
D1             the total *incidental costs incurred that relate to the trigger event
D2             the total expenditure incurred to grant the option
D3             the total expenditure incurred to grant the right
F1             the total expenditure incurred on the grant, renewal or extension of the lease

  The expenditure can include a transfer of property: see section 103‑5.

 (3) The first element of the created asset's *reduced cost base (in the hands of the company) is worked out similarly.

[The next Division is Division 124.]

Division 124—Replacement‑asset roll‑overs

Table of Subdivisions

 Guide to Division 124

124‑A General rules

124‑B Asset compulsorily acquired, lost or destroyed

124‑C Statutory licences

124‑D Strata title conversion

124‑E Exchange of shares or units

124‑F Exchange of rights or options

124‑G Exchange of shares in one company for shares in another company

124‑H Exchange of units in a unit trust for shares in a company

124‑I Conversion of a body to an incorporated company

124‑J Crown leases

124‑K Plant

124‑L Prospecting and mining entitlements

Guide to Division 124

124‑1  What this Division is about

      A replacement‑asset roll‑over allows you, in special cases, to defer the making of a capital gain or loss from one CGT event until a later CGT event happens. It involves your ownership of one CGT asset ending and you acquiring another one.

124‑5  How to find your way around this Division

 (1) First, find out if you can obtain a roll‑over when your ownership of one or more CGT assets ends and you acquire one or more CGT assets: see Subdivisions 124‑B to 124‑L.

 (2) Second, find out what the consequences are for being able to obtain a roll‑over: see Subdivision 124‑A.

 (3) Third, find out if there are any special rules relevant to your situation: see the Subdivision under which you can get the roll‑over.

Subdivision