Income Tax Assessment Act 1997



Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Dwellings acquired from deceased estates

SECTION 118-210   Trustee acquiring dwelling under will  

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.

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.


(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.

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


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.

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.


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


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


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