Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A * capital gain or * capital loss you make from a * CGT event that happens in relation to a * dwelling or your * ownership interest in it is disregarded if:
(a) you are an individual and the interest * passed to you as a beneficiary in a deceased estate, or you owned it as the trustee of a deceased estate; and
(b) at least one of the items in column 2 and at least one of the items in column 3 of the table are satisfied; and
(c) the deceased was not an * excluded foreign resident just before the deceased's death.
Beneficiary or trustee of deceased estate acquiring interest | ||
Item | One of these items is satisfied | And also one of these items |
1 | the deceased * acquired the * ownership interest on or after 20 September 1985 and the * dwelling was the deceased's main residence just before the deceased's death and was not then being used for the * purpose of producing assessable income | your * ownership interest ends within 2 years of the deceased's death, or within a longer period allowed by the Commissioner |
2 | the deceased * acquired the * ownership interest before 20 September 1985 | the * dwelling was, from the deceased's death until your * ownership interest ends, the main residence of one or more of: (a) the spouse of the deceased immediately before the death (except a spouse who was living permanently separately and apart from the deceased); or (b) an individual who had a right to occupy the dwelling under the deceased's will; or (c) if the * CGT event was brought about by the individual to whom the * ownership interest * passed as a beneficiary--that individual |
Note 1: You may make a capital gain or capital loss if the dwelling was used for the purpose of producing assessable income: see section 118 - 190.
Note 2: In some cases the use of a dwelling to produce assessable income can be disregarded: see sections 118 - 145 and 118 - 190.
Note 3: There are special rules for dwellings acquired before 7.30 pm on 20 August 1996. These rules also affect the operation of section 118 - 192 and subsections 118 - 190(4) and 118 - 200(4): see section 118 - 195 of the Income Tax (Transitional Provisions) Act 1997 .
(1A) For the purposes of a provision of this Subdivision that applies the table in subsection (1):
(a) disregard paragraphs (a) and (b) in column 3 of item 2 of the table if, just before the deceased's death, the deceased was an * excluded foreign resident; and
(b) disregard paragraph (c) in column 3 of item 2 of the table if, at the time the relevant * CGT event happened, the individual was an excluded foreign resident.
Note: The other provisions that apply the table include paragraph 118 - 192(3)(b), subsection 118 - 200(2), paragraph 118 - 225(3)(c) and section 118 - 260.
(2) Only these * CGT events are relevant:
(a) CGT events A1, B1, C1, C2, E1, E2, 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.