Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 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.

Note 3:       The reduced cost base may be further modified if the replacement asset roll-over happens after a demerger: see section 125-170.



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