DB 23CRevenue account property: cost of some residential land reduced

1. For the purposes of section DB 23, the cost of residential land for which income is derived under section CB 6A(8) (Disposal within 10 years: bright-line test for residential land) is reduced by the excluded adjustment amount calculated using the formula in subsection (2).

2. The excluded adjustment amount for the purposes of subsection (1) is calculated using the following formula:

   $cost\; \times \; (exempted\; non-predominant\; main\; home\; days\; \times \; main\; home\; percentage\; +\; exempted\; predominant\; main\; home\; days)\; /\; total\; days.$

   Where:

3. The items in the formula are defined in subsections (4) to (7).

4. Cost is the cost of the land.

5. Exempted non-predominant main home days has the same meaning as in section CB 6A(11).

6. Main home percentage has the same meaning as in section CB 6A(11B).

7. Exempted predominant main home days has the same meaning as in section CB 6A(11C).

8. Total days has the same meaning as in section CB 6A(11D).