Document ID: chunk:federal_register_of_legislation:C2011A00147:clause:1_4:p3
Version: federal_register_of_legislation:C2011A00147
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/4)
Character Range: 12329–14997

have made apart from this section from the CGT event is decreased by an amount that is reasonable.
 (3) In determining what is a reasonable decrease:
 (a) if section 118‑220 applies to you, but paragraph (1)(b) does not—treat yourself as being an individual who owned the *CGT asset as the trustee of the deceased's estate; and
 (b) if section 118‑222 applies to you—treat yourself as being an individual and treat the CGT asset or your *ownership interest in it as having *passed to you as a beneficiary in the deceased's estate; and
 (c) have regard to the principles in this Subdivision, and to:
 (i) the extent that the applicable *dwelling was the deceased's main residence for the relevant period; and
 (ii) the extent that the dwelling was used for the *purpose of producing assessable income during the relevant period.
 (4) For the purposes of subparagraph (3)(c)(i), assume the *dwelling was not the deceased's main residence on each day the trust referred to in paragraph 118‑220(b) was not a *special disability trust.

118‑227  Amount of exemption available after the principal beneficiary's death—cost base and reduced cost base
 (1) If section 118‑220 applies to you and:
 (a) the applicable *dwelling was the deceased's main residence just before the deceased's death; and
 (b) that dwelling was not then being used for the *purpose of producing assessable income; and
 (c) the trust referred to in paragraph 118‑220(b) was then a *special disability trust;
then:
 (d) the first element of the *CGT asset's *cost base, in your hands, is the CGT asset's *market value just before the deceased's death; and
 (e) the first element of the CGT asset's *reduced cost base, in your hands, is worked out similarly.
 (2) However, if section 118‑220 applies to you as trustee of an implied trust arising because of the deceased's death, but subsection (1) does not, then:
 (a) the first element of the *CGT asset's *cost base, in your hands, is the CGT asset's cost base just before the deceased's death; and
 (b) the first element of the CGT asset's *reduced cost base, in your hands, is worked out similarly.
 (3) If section 118‑222 applies to you:
 (a) the first element of the *CGT asset's *cost base, in your hands, is the CGT asset's cost base just before the earlier *CGT event happened that resulted in you *acquiring the CGT asset or your *ownership interest in it; and
 (b) the first element of the CGT asset's *reduced cost base, in your hands, is worked out similarly.

118‑230  Application of CGT events E5 and E7 in relation to main residence exemption and special disability trusts
  If *CGT event E5 or E7 happens in relation to a *CGT asset held