INCOME TAX ASSESSMENT ACT 1997 - SECT 124.720 Part of original entitlement excised

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.720

  (1)   There is partial roll - over if you * acquired the original entitlement on or after 20   September 1985 and:

  (a)   the land to which the new entitlement relates is different in area to the land the subject of the original entitlement because a part (the excised part ) of the land to which the original entitlement related was excised or you relinquished it; and

  (b)   you received a payment for the expiry or surrender of the original entitlement.

The payment can include giving property: see section   103 - 5.

Note:   Section   124 - 730 sets out the effect on your cost base.

  (2)   There is no roll - over for the excised part. The * cost base of the excised part   is so much of the * cost base of the original entitlement as is attributable to the excised part.

    Its * reduced cost base is worked out similarly.

Note:   You may make a capital gain or loss on the excised part because of CGT event C2.