Income Tax Assessment Act 1997
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.
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.
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 if, at the time the dwelling is sold, Susan is an Australian resident.
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 if, at the time the dwelling is sold, David is an Australian resident.