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INCOME TAX ASSESSMENT ACT 1997 - SECT 118.210

Trustee acquiring dwelling under will

  (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.

  (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.

  (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.

  (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:

Start formula CG or CL amount times start fraction Non-main residence days over Days in that period end fraction end formula

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.

  (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.

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


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