Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.90

Consequences for receiving an asset

             (1)  If you receive another * CGT asset for the event happening, there are these consequences if you choose to obtain a roll-over.

             (2)  A * capital gain you make from the original asset is disregarded.

             (3)  If you * acquired the original asset on or after 20 September 1985:

                     (a)  the first element of the other asset's * cost base is the original asset's cost base at the time of the event; and

                     (b)  the first element of the other asset's * reduced cost base is the original asset's reduced cost base at the time of the event.

Note:          There are special indexation rules for roll-overs: see Division 114.

Example:    Steven bought land in 1999 for $100,000. In 2001 the government compulsorily acquires the land and gives him new land in return.

                   A capital gain he makes from the original land is disregarded. Suppose the original land's cost base when it is acquired is $120,000. The first element of the new land's cost base becomes $120,000.

             (4)  If you acquired the original asset before 20 September 1985, you are taken to have * acquired the other asset before that day.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback