Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_10:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 5/7)
Character Range: 174752–177439

section 42‑285 or 42‑290; or

 (ii) subsection 59(2A) or (2D) of the Income Tax Assessment Act 1936;

calculated according to the entity's share in the partnership net income or net loss.

 (2) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner has deducted or can deduct it (including because of a balancing adjustment), or could have deducted it apart from paragraph 43‑70(2)(h).

 (3) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent that a partnership in which the entity is or was a partner has taken the expenditure into account under paragraph 42‑175(b).

 (4) Expenditure does not form part of an entity's reduced cost base for its interest in a *CGT asset of a partnership to the extent of any amounts that a partnership in which the entity is or was a partner has received as *recoupment of it and that are not included in the assessable income of the partnership.

 (5) If a *CGT asset of a partnership is a *share in a company, an entity's reduced cost base for its interest in the share is reduced by the amount calculated under subsection (7) if:

 (a) the company makes a distribution to the partnership under an *arrangement; and

 (b) an amount (the attributable amount) representing the distribution or part of it is reasonably attributable to profits derived by the company before the partnership *acquired the share; and

 (c) the partnership is entitled to a rebate of income tax under section 46 or 46A of the Income Tax Assessment Act 1936 (the dividend rebate) on the part of the distribution that is a *dividend (the dividend amount); and

 (d) a partner in the partnership was a *controller (for CGT purposes) of the company, or an *associate of such a controller, when the arrangement was made or carried out.

 (6) The amount of the reduction is:

Division 112—Modifications to cost base and reduced cost base

Table of Subdivisions

 Guide to Division 112

112‑A General modifications

112‑B Finding tables for special rules

112‑C Replacement‑asset roll‑overs

112‑D Same‑asset roll‑overs

Guide to Division 112

112‑1  What this Division is about

      This Division tells you the situations that may modify the general rules about the cost base and reduced cost base of a CGT asset.

112‑5  Discussion of modifications

 (1) Modifications can occur from the time you acquired the CGT asset to when a CGT event happens in relation to it.

Note: You should keep records of the modifications: see Division 121.

 (2)