Commonwealth Consolidated Acts

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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.


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