Your area is taken to be used for a particular purpose or in a particular manner if:
- it is maintained ready for that use, is not used for another purpose and its use had not been abandoned, or
- its use has temporarily ceased because of, for example, construction or repairs or seasonal or climatic conditions.
Your area is taken not to be used to produce assessable income if:
- it is used, or for use, wholly or mainly, for exhibition or display in connection with the sale of all or part of any building - and it is not a hotel or apartment building - and construction began after 17 July 1985 but before 1 July 1997. If construction started after 30 June 1997, buildings that are used for display are eligible;
- construction began after 19 July 1982 and before 18 July 1985, it is used of for use
- wholly or mainly for, or in association with, residential accommodation - and is not a hotel or apartment building, or
- wholly or mainly for exhibition or display in connection with the sale of all or part of any building, or the lease of all or part of any building for use wholly or mainly for, or in association with, residential accommodation - and it is not a hotel or apartment building or an extension, alteration, or improvement to such a building
- the fund or an associate uses it mainly for, or in association with, residential accommodation - and it is not a hotel or apartment building. See subsection 43-170(2) of the ITAA 1997 for exceptions to this rule.
Your area, other than a hotel or apartment building is taken to be used, or for use wholly or mainly for, or in association with, residential accommodation if it is:
- part of an individual's home - other than a hotel or apartment building, or
- used or for use, wholly or mainly for the purpose of operating a hotel, motel or guest house- and construction began after 19 July 1982 and before 18 July 1985.
Special rules for hotel and apartment buildings are contained in section 43-180 of the ITAA 1997.