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  

Basic case and concepts

SECTION 118-120   Extension to adjacent land etc.  

Adjacent land

118-120(1)  
This Subdivision applies to a *dwelling ' s *adjacent land (if the same *CGT event happens to that land or your *ownership interest in it) as if it were a dwelling.

118-120(2)  
Land adjacent to a *dwelling is its adjacent land to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.

118-120(3)  
The maximum area of *adjacent land covered by the exemption for the *CGT event (the current event ) is 2 hectares, less the area of the land immediately under the *dwelling.

118-120(4)  
However, if subsection 118-245(2) applied to you for an earlier *CGT event that happened in relation to:


(a) other land that was part of the *dwelling ' s *adjacent land at the time of the earlier CGT event; or


(b) your *ownership interest in that other land at that time;

the maximum area of land covered by the exemption for the current event is the *maximum exempt area for the current event and the dwelling.

Adjacent structures

118-120(5)  
This Subdivision applies to an *adjacent structure of a flat or home unit (if the same *CGT event happens to that structure or your *ownership interest in it) as if it were a *dwelling.

118-120(6)  
A garage, storeroom or other structure associated with a flat or home unit is an adjacent structure of the flat or home unit to the extent that the structure was used primarily for private or domestic purposes in association with the flat or home unit.


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