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  

Roll-overs under Subdivision 126-A

SECTION 118-178   Previous roll-over under Subdivision 126-A  

118-178(1)  
This section applies to you if:


(a) you *acquired an *ownership interest in a *dwelling from another person (your former partner ) as a result of a *CGT event (the earlier event ); and


(b) your former partner acquired the ownership interest on or after 20 September 1985; and


(c) there was a roll-over under Subdivision 126-A (marriage or relationship breakdown roll-over) for the earlier event; and


(d) a CGT event (the later event ) happens in relation to the ownership interest.

118-178(2)  
This Subdivision applies to the later event in the way that it would if:


(a) your *ownership interest had commenced when your former partner's ownership interest commenced (the acquisition time ); and


(b) from the acquisition time until the time your former partner's ownership interest ended:


(i) you had used the *dwelling in the same way that your former partner used it; and

(ii) the dwelling had been your main residence for the same number of days as it was your former partner's main residence.
EXAMPLES
Example 1:

Peter (the transferor spouse) is the 100% owner of a dwelling that he uses only as a main residence before transferring it to Susan (the transferee spouse). Susan uses the dwelling only as a rental property.

Susan will be eligible for a partial main residence exemption having regard to how both Peter and Susan used the dwelling.

Example 2:

Caroline (the transferor spouse) is the 100% owner of a dwelling that she uses only as a rental property before transferring it to David (the transferee spouse). David uses the dwelling only as a main residence.

David will be eligible for only a partial main residence exemption having regard to how both Caroline and David used the dwelling.


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