Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 118
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Exemptions
Subdivision 118-B
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Main residence
Compulsory acquisitions of adjacent land only
SECTION 118-255 118-255 Maximum exempt area
Your maximum exempt area for the *CGT event and the *dwelling is 2 hectares less the amount worked out as follows: Method statement
Step 1.(a) happened in relation to land that was part of the *dwelling
'
s *adjacent land at the time of the earlier CGT event, or happened in relation to your *ownership interest in that land at that time; and
(b) resulted in you losing rights to the substantial use and enjoyment of that land either completely or for at least 10 years;
Step 2.
Step 3.
View history note
Hide history noteSECTION 118-255 118-255 Maximum exempt area
Your maximum exempt area for the *CGT event and the *dwelling is 2 hectares less the amount worked out as follows: Method statement
Step 1.
Identify each earlier *CGT event (if any) that:
for which you made a *capital gain or *capital loss that was wholly or partly disregarded because of the application of subsection 118-245(2) .
Step 2.
For each earlier *CGT event covered by step 1, work out the area of the exempt land for that application of subsection 118-245(2) .
Step 3.
Add the results from step 2 to the area of the land immediately under the *dwelling.
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