s 134-1
In forceExercise of options
Chapter 3Specialist liability rules
Part 3-3Capital gains and losses: special topics
Division 134Options
134-1 Exercise of options
(1)
The modification in item 1 in the table in subsection 134‑1(1) of the Income Tax Assessment Act 1997 does not apply to an option (that was granted before 20 September 1985 and exercised after that day) that binds the grantor to create (including grant or issue) or dispose of a CGT asset. Instead, the first element of the cost base and reduced cost base of the CGT asset acquired by the grantee by exercising the option includes the market value of the option when it was exercised.
(2)
This section does not apply to an option if:
(a)
it has been renewed or extended; and
(b)
the last renewal or extension occurred on or after 20 September 1985.
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