Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:4_1:p6
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 4 cl 1 (pt 6/6)
Character Range: 32764–34803

for the assets of the partnership.

 (3) An asset of the partnership at the joining time is covered by this subsection, unless it would be an excluded asset for the purposes of section 705‑35 on the assumption that tax cost setting amounts were worked out for the assets of the partnership under Division 705 (instead of section 713‑240).

713‑240  Partnership joins group—tax cost setting amount for partnership asset

 (1) Work out the *tax cost setting amounts for the assets covered by subsection 713‑235(3) as follows:
 (a) firstly, add up the subsection (2) amounts for all the partnership cost setting interests in the partnership at the joining time (the result is the partnership cost pool);

Note 1: Partnership cost setting interests held by a partner that becomes a subsidiary member of the group at the joining time are included in the calculation in paragraph (a). The operation of the cost setting rules in relation to that partner at the joining time may affect the subsection (2) amounts for those interests.

Note 2: Partnership cost setting interests are included in the calculation in paragraph (a), even if the cost setting rules have not applied in relation to the interests (for example, if the interests were acquired directly by the head company).
 (b) secondly, work out the tax cost setting amounts for the assets covered by subsection 713‑235(3) that are *retained cost base assets, in accordance with section 705‑25;
 (c) thirdly, work out the tax cost setting amounts for the rest of the assets covered by subsection 713‑235(3), in accordance with subsection (3).

Subsection (2) amount for a partnership cost setting interest

 (2) For the purposes of paragraph (1)(a), the subsection (2) amount for a *partnership cost setting interest is the amount specified in the following table:

Working out the subsection (2) amount
Item                                   If the market value of the partnership cost setting interest is ...  the subsection (2) amount for the partnership cost setting interest is ...