Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.