Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 122.65

Creation of asset

  (1)   If you choose a roll - over, a * capital gain or * capital loss you make from the trigger event is disregarded.

  (2)   The first element of each * share's * cost base is the amount applicable under this table divided by the number of shares. The first element of each share's * reduced cost base is worked out similarly.

 

Creation case

Event No.

Applicable amount

D1

the * incidental costs you incurred that relate to the trigger event

D2

the expenditure you incurred to grant the option

D3

the expenditure you incurred to grant the right

F1

the expenditure you incurred on the grant, renewal or extension of the lease

    The expenditure can include a transfer of property: see section   103 - 5.

Example:   Bill grants a licence (CGT event D1) to Tiffin Pty Ltd (a company he owns). The company issues him with 2 additional shares. He incurs legal expenses of $1,000 to grant the licence.

  Bill's cost base for each of the shares is $500.


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