Taxation Laws Amendment Act (No. 3) 1997 (Repealed) (147 of 1997)

Schedule 5   Principal residence exemption from CGT

Part 1   Amendment of the Income Tax Assessment Act 1936

Division 3   Dwellings acquired from deceased persons: status of residence at time of death

29   At the end of subsection 160ZZQ(21)

Add:

; and (f) if subsection (13), (13A), (14) or (15) would have applied in respect of the disposal - the extent to which, and the period for which, the dwelling was used for the purpose of gaining or producing assessable income in the period during which both:

(i) the deceased person mentioned in whichever of those subsections would have applied owned the dwelling; and

(ii) the dwelling was the deceased person's sole or principal residence.

Note: This paragraph means that, in determining the amount of the capital gain or capital loss, the Commissioner must have regard to certain use of the dwelling for the purpose of gaining or producing assessable income before the death. However, this rule is subject to subsection (22).