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  

Dwellings acquired from deceased estates

SECTION 118-210   Trustee acquiring dwelling under will  

118-210(1)  
This section applies if you are the trustee of a deceased estate and, under the deceased's will, you *acquire an *ownership interest in a *dwelling for occupation by an individual.

118-210(2)  
If a *CGT event happens to the interest in relation to the individual and you receive no money or property for it:

(a) a *capital gain or *capital loss you make from the event is disregarded; and

(b) the first element of the *dwelling's *cost base and *reduced cost base in the hands of the individual is its cost base and reduced cost base in your hands at the time of the event; and

(c) the individual is taken to have *acquired it when you did.

118-210(3)  
If:

(a) you receive money or property for the *CGT event happening or the event happens in relation to another entity; and

(b) the dwelling was the main residence of the individual from the time you *acquired the interest until the time of the event;

you do not make a *capital gain or *capital loss from the CGT event.

118-210(4)  
However, if the *dwelling was the main residence of the individual during part only of that period, you make a *capital gain or *capital loss worked out using the formula:

CG or CL amount

×

Non-main residence days   Days in that period

where:

CG or CL amount
is the *capital gain or *capital loss you would have made from the *CGT event apart from this Subdivision.

non-main residence days
is the number of days in that period when the *dwelling was not the individual's main residence.

118-210(5)  
Only these *CGT events are relevant:

(a) CGT events A1, B1, C1, C2, E1, E2, E5, F2, K3, K4 and K6 (except one involving the forfeiting of a deposit); and

(b) a CGT event that involves the forfeiting of a deposit as part of an uninterrupted sequence of transactions ending in one of the events specified in paragraph (a) subsequently happening.

Note:

The full list of CGT events is in section 104-5 .

118-210(6)  

However, this section does not apply if, just before the deceased ' s death, the deceased was an *excluded foreign resident.