Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/12)
Character Range: 2286954–2289655

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 (1)(b) does not; or
 (b) section 118‑222 applies to you in relation to a CGT event;
the amount of the *capital gain or *capital loss that you would 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.
 (5) However, subsection (2) does not apply if, just before the deceased's death, the deceased was an *excluded foreign resident.

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; and
 (ca) the deceased was not an *excluded foreign resident just before the deceased's death;
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