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  

Special disability trusts

SECTION 118-227   Amount of exemption available after the principal beneficiary ' s death - cost base and reduced cost base  

118-227(1)    
If section 118-220 applies to you and:

(a) the applicable *dwelling was the deceased ' s main residence just before the deceased ' s death; and

(b) that dwelling was not then being used for the *purpose of producing assessable income; and

(c) the trust referred to in paragraph 118-220(b) was then a *special disability trust; and

(ca) the deceased was not an *excluded foreign resident just before the deceased ' s death;

then:

(d) the first element of the *CGT asset ' s *cost base, in your hands, is the CGT asset ' s *market value just before the deceased ' s death; and

(e) the first element of the CGT asset ' s *reduced cost base, in your hands, is worked out similarly.

118-227(2)    
However, if section 118-220 applies to you as trustee of an implied trust arising because of the deceased ' s death, but subsection (1) does not, then:

(a) the first element of the *CGT asset ' s *cost base, in your hands, is the CGT asset ' s cost base just before the deceased ' s death; and

(b) the first element of the CGT asset ' s *reduced cost base, in your hands, is worked out similarly.

118-227(3)    
If section 118-222 applies to you:

(a) the first element of the *CGT asset ' s *cost base, in your hands, is the CGT asset ' s cost base just before the earlier *CGT event happened that resulted in you *acquiring the CGT asset or your *ownership interest in it; and

(b) the first element of the CGT asset ' s *reduced cost base, in your hands, is worked out similarly.