(1) The object of this section (with section 115- 115) is to adjust the discount percentage so as to deny you a discount to the extent that you accrued a * capital gain while a foreign resident or * temporary resident.
When this section applies
(2) This section applies to a * discount capital gain if:
(a) you are an individual; and
(b) you * acquire a * CGT asset; and
(c) you make the discount capital gain from a * CGT event happening in relation to the CGT asset; and
(d) the period (the discount testing period ):
(i) starting on the day you acquired the CGT asset; and
(ii) ending on the day the CGT event happens;
ends after 8 May 2012; and
(e) you were a foreign resident or * temporary resident during some or all of so much of that period as is after 8 May 2012.
Note: Section 115-30 has special rules about when assets are acquired.
Changed residency status
(3) For the purposes of this section and section 115- 115, if:
(a) another individual owned the * CGT asset on a particular day before the discount testing period ends; and
(b) on that day, that individual was one of the following (that individual's residency status ):
(i) an Australian resident (but not a * temporary resident);
(ii) a temporary resident;
(iii) a foreign resident; and
(c) section 115-30 treats you as having * acquired the CGT asset when that individual, or an earlier owner of the CGT asset, acquired it;
you are treated as having the same residency status on that day as that individual had on that day.