Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) There are these consequences for the company in a disposal case if you choose to obtain a roll - over. They are relevant for each * CGT asset (except a * precluded asset) that you * disposed of to the company.
Note: A capital gain or loss from a precluded asset can be disregarded: see Subdivision 118 - A.
Asset acquired on or after 20 September 1985
(2) If you * acquired the asset on or after 20 September 1985:
(a) the first element of the asset's * cost base (in the hands of the company) is the asset's cost base when you disposed of it; and
(b) the first element of the asset's * reduced cost base (in the hands of the company) is the asset's reduced cost base when you disposed of it.
Note 1: There are special indexation rules for roll - overs: see Division 114.
Note 2: The reduced cost base may be modified for a roll - over happening after a demerger: see section 125 - 170.
Asset acquired before 20 September 1985
(3) If you * acquired the asset before 20 September 1985, the company is taken to have acquired it before that day.
Note: A capital gain or loss from a CGT asset acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.