INCOME TAX ASSESSMENT ACT 1997 - SECT 118.245 CGT events happening only to adjacent land

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.245

Total adjacent land is 2 hectares or less

  (1)   A * capital gain or * capital loss you make from a * CGT event that happens in relation to land (the exempt land ), or your * ownership interest in it, is disregarded if:

  (a)   you are an individual; and

  (b)   the exempt land is all or part of a * dwelling's * adjacent land at the time of the CGT event; and

  (c)   the CGT event does not happen in relation to the dwelling and does not happen in relation to your ownership interest in the dwelling; and

  (d)   one of the following subparagraphs applies:

  (i)   the dwelling was your main residence throughout all or part of your * ownership period of the dwelling;

  (ii)   your ownership interest in the dwelling * passed to you as a beneficiary in a deceased estate;

  (iii)   you own your ownership interest in the dwelling as the trustee of a deceased estate; and

  (e)   section   118 - 250 (about compulsory acquisitions of adjacent land) applies to the CGT event and the exempt land; and

  (f)   the sum of the following is 2 hectares or less:

  (i)   the area of all of the dwelling's adjacent land at the time of the CGT event;

  (ii)   the area of the land immediately under the dwelling;

  (iii)   if this section applied to you for an earlier CGT event that involved reducing the area of the dwelling's adjacent land at the time of that earlier CGT event--that reduction in area.

Note:   You may get only a partial exemption for the gain or loss (see section   118 - 260).

Total adjacent land is more than 2 hectares

  (2)   If:

  (a)   apart from paragraph   (1)(f), subsection   (1) would apply to the gain or loss; and

  (b)   you choose this subsection to apply to the gain or loss;

disregard so much of the gain or loss that relates to land (the exempt land ) within the * maximum exempt area for the * CGT event and the * dwelling.

Note:   You may get only a partial exemption for this portion of the gain or loss (see section   118 - 260).

No exemption if you are an excluded foreign resident

  (3)   However, this section does not apply if, at the time the * CGT event happens, you:

  (a)   are an * excluded foreign resident; or

  (b)   are a foreign resident who does not satisfy the * life events test.