Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_20
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 20
Character Range: 202410–204897

20                                            A tax exempt entity becomes taxable                                                               First element of cost base and reduced cost base                                                                                  section 57‑25 of Schedule 2D

Subdivision 112‑C—Replacement‑asset roll‑overs

Table of sections

112‑100 Effect of this Subdivision
112‑105 What is a replacement‑asset roll‑over?
112‑110 How is the cost base of the replacement asset modified?
112‑115 Table of replacement‑asset roll‑overs

112‑100  Effect of this Subdivision

  This Subdivision is a *Guide.

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

112‑105  What is a replacement‑asset roll‑over?

 (1) A replacement‑asset roll‑over allows you to defer the making of a capital gain or a capital loss from one CGT event until a later CGT event happens.

 (2) It involves your ownership of one CGT asset (the original asset) ending and you acquiring another one (the replacement asset).

 (3) All replacement‑asset roll‑overs are set out in Divisions 122 and 124 of this Act and Division 17A of Part IIIA of the Income Tax Assessment Act 1936.

112‑110  How is the cost base of the replacement asset modified?

  If you acquired the original asset on or after 20 September 1985:

 (a) the first element of the replacement asset's cost base is replaced by the original asset's cost base at the time you acquired the replacement asset; and

 (b) the first element of the replacement asset's reduced cost base is replaced by the original asset's  reduced cost base at the time you acquired the replacement asset.

Note 1: Some replacement‑asset roll‑overs involve other rules that affect the cost base or reduced cost base of the replacement asset.

Note 2: If you acquired the original asset before 20 September 1985, you are taken to have acquired the replacement asset before that day: see Subdivision 124‑A.

112‑115  Table of replacement‑asset roll‑overs

  This table sets out all the replacement‑asset roll‑overs and tells you where you can find more detail about each one.

  Provisions of this Act are in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.

Replacement‑asset roll‑overs
Item                          For the rules about this roll‑over:                                                    See: