Commonwealth Consolidated Acts

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Revenue assets--individual asset approach

Consequences for transferring entity

             (1)  If the transferring entity derives assessable income (other than a * capital gain) or incurs a * tax loss for a transfer event relating to an original asset to which this section applies, the entity choosing the roll-over can choose for the transferring entity's gross proceeds for the event to be taken to be the amount (the deemed proceeds ) the transferring entity would need to have received in order to have a nil profit and nil loss for the event.

Note:          This section only applies if it is chosen to apply under subsection 310-50(3).

Consequences for receiving entity

             (2)  If a choice is made under subsection (1), the receiving entity is taken to have paid an amount for the corresponding received asset at the time of the transfer event that is equal to the deemed proceeds for the event.

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