(1) A part of capital works, other than a * hotel building or an * apartment building, is taken not to be used for the * purpose of producing assessable income if that part is for use mainly for, or in association with, residential accommodation by you or an * associate.
Note: This subsection affects Tables 43-140 and 43-145.
(2) Subsection (1) does not apply to use by an * associate under an * arrangement:
(a) to which you and the associate are parties; and
(b) that is of a kind that the parties could reasonably be expected to have entered into if they had been dealing with each other at * arm's length; and
(c) that was not entered into for the purpose of obtaining a deduction under this Division.
(3) If property that constitutes the whole or part of capital works, other than a * hotel building or an * apartment building, is part of an individual's home, the property is taken to be used, or for use, wholly or mainly for or in association with residential accommodation.
Note: This subsection affects Tables 43-90 and 43-140.