Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Compulsory acquisitions of adjacent land only

SECTION 118-255   118-255   Maximum exempt area  


Your maximum exempt area for the *CGT event and the *dwelling is 2 hectares less the amount worked out as follows: Method statement

Step 1.

Identify each earlier *CGT event (if any) that:

  • (a) happened in relation to land that was part of the *dwelling ' s *adjacent land at the time of the earlier CGT event, or happened in relation to your *ownership interest in that land at that time; and
  • (b) resulted in you losing rights to the substantial use and enjoyment of that land either completely or for at least 10 years;
  • for which you made a *capital gain or *capital loss that was wholly or partly disregarded because of the application of subsection 118-245(2) .


    Step 2.

    For each earlier *CGT event covered by step 1, work out the area of the exempt land for that application of subsection 118-245(2) .


    Step 3.

    Add the results from step 2 to the area of the land immediately under the *dwelling.


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