Where a taxpayer commences to rent out their PPR, section 118-192 of the ITAA97 provides that the taxpayer is taken to have acquired the property at that date for its then market value.
Section 118-192 has two broad implications:
• The taxpayer is able to use the provision to obtain an up-lift in their tax cost base for the property; and
• The provision could equally result in the days in which the property was lived in as their PPR being ignored for the purposes of calculating the taxable component of any overall capital gain on sale.
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