Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/5)
Character Range: 279646–282330

main residence of an individual referred to in item 2, column 3 of the table in section 118‑195.

total days is:

 (a) if the deceased *acquired the *ownership interest before 20 September 1985—the number of days in the period from the death until your ownership interest ends; or

 (b) if the deceased acquired the ownership interest on or after that day—the number of days in the period from the acquisition of the dwelling by the deceased until your ownership interest ends.

 (3) However, if the deceased *acquired the *ownership interest on or after 20 September 1985 and your ownership interest ends within 2 years of the deceased's death and you get a more favourable result by doing so, you can adjust the formula by ignoring any non‑main residence days and total days in the period from the deceased's death until your ownership interest ended.

Note 1: The formula in this section will be adjusted (or further adjusted) under section 118‑205 if the deceased acquired the dwelling through a deceased estate.

Note 2: There may be a further adjustment if the dwelling was used for the purpose of producing assessable income: see section 118‑190.

 (4) You ignore any non‑main residence days before the deceased's death if:

 (a) the *dwelling was the deceased's main residence just before the death; and

 (b) the dwelling was not being used for the *purpose of producing assessable income just before the death, or any use for that purpose just before the death was ignored because of subsection 118‑190(3).

118‑205  Adjustment if dwelling inherited from deceased individual

 (1) You must adjust the formula in subsection 118‑200(2) if the *ownership interest of the deceased individual referred to in section 118‑200 (the most recently deceased) *passed to the individual on or after 20 September 1985 as a beneficiary in, or the individual owned it as trustee of, a deceased estate.

Note: Any gains or losses of individuals earlier in the inheritance chain are included in the gain or loss you would have made apart from this Subdivision. This section adjusts the formula to take account of times when the dwelling was the main residence of the individuals.

 (2) Add to the component total days in the formula the fewer of:

 (a) the number of days between 20 September 1985 and the day when the interest *passed to or was *acquired as trustee by the most recently deceased; and

 (b) the number of days between the time when an *ownership interest in the *dwelling was last acquired on or after 20 September 1985 by an individual except as a beneficiary in a deceased estate or as trustee of a deceased estate and the day when the interest passed to or