Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 112.35

    If you * acquire a * CGT asset from another entity that is subject to a liability, the first element of your * cost base and * reduced cost base of the asset includes the amount of the liability you assume.

Example:   You acquire a block of land for $150,000. You pay $50,000 and assume a liability for an outstanding mortgage of $100,000. The first element of your cost base and reduced cost base is $150,000.

Note:   The first element of cost base is dealt with in subsection   110 - 25(2). The first element of reduced cost base is the same: see subsection   110 - 55(2).