Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/12)
Character Range: 2284603–2287197

it, *passed to you as a beneficiary in a deceased estate:
 (a) treat the deceased as never having used the applicable *dwelling for the *purpose of producing assessable income; and
 (b) treat the dwelling as being the deceased's main residence on each day during the deceased's *ownership period;
for the purposes of applying this Subdivision in relation to the *CGT event.
 (5) Despite subsection (1), this section does not apply if, at the time the *CGT event happens, the *principal beneficiary of the trust:
 (a) is an *excluded foreign resident; or
 (b) is a foreign resident who does not satisfy the *life events test.

118‑220  Exemption available to trustee—after the principal beneficiary's death
  This section applies to you in relation to a *CGT event if:
 (a) the trustee of a trust holds a *CGT asset on a particular day (the transition day); and
 (b) on the transition day, or on an earlier day on which the CGT asset was held by the trustee of the trust, the trust is a *special disability trust; and
 (c) the individual who is or has been the *principal beneficiary of the trust dies on the transition day; and
 (d) the CGT event happens in relation to the CGT asset at or after the deceased's death; and
 (e) the CGT event happens while you hold the CGT asset:
 (i) as trustee of the trust; or
 (ii) as trustee of an implied trust arising because of the deceased's death.

118‑222  Exemption available to other beneficiary who acquires the CGT asset after the principal beneficiary's death
  This section applies to you in relation to a *CGT event if:
 (a) the CGT event happens in relation to a *CGT asset; and
 (b) you *acquired the CGT asset or your *ownership interest in it:
 (i) as a result of an earlier CGT event; and
 (ii) as a beneficiary of a trust; and
 (c) section 118‑220 applied to the trustee of the trust in relation to the earlier CGT event and the CGT asset.

118‑225  Amount of exemption available after the principal beneficiary's death—general

Full exemption for trustee unless sells asset for proceeds etc.
 (1) A *capital gain or *capital loss you make from a *CGT event is disregarded if:
 (a) section 118‑220 applies to you in relation to the CGT event; and
 (b) as a result of the CGT event, an entity *acquires the *CGT asset:
 (i) as trustee of an implied trust arising because of the deceased's death; or
 (ii) as a beneficiary of the relevant trust referred to in paragraph 118‑220(e).

Exemption for beneficiary, or trustee selling asset for proceeds etc.
 (2) If:
 (a) section 118‑220 applies to you in relation to a *CGT event, but paragraph