Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/12)
Character Range: 2289438–2292036

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 by a trust that is or has been a *special disability trust, treat the lists of CGT events in paragraphs 118‑110(2)(a) and 118‑195(2)(a) as including a reference to that CGT event.

Compulsory acquisitions of adjacent land only

118‑240  What the following provisions are about

      You can ignore a capital gain or capital loss you make from a compulsory acquisition (or similar arrangement) that happens only to land that is adjacent to:

                (a) a dwelling that is your main residence; or
                (b) a dwelling that passed to you as a beneficiary, or trustee, of a deceased estate;

      to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.
      There is a limit on the maximum area of land covered by the exemption.
Note 1: The exemption may not apply in full if the dwelling:
(a) was not always a main residence; or
(b) was used for the purpose of producing assessable income.
Note 2: The exemption may not apply at all if you are a foreign resident.

118‑245  CGT events happening only to adjacent land

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