If you start using part or all of your main residence to produce income for the first time after 20 August 1996, a special rule affects the way you calculate your capital gain or capital loss.
In this case, you are taken to have acquired the dwelling at its market value at the time you first used it to produce income if all of the following apply:
If all of the above apply, you must work out your capital gain or capital loss using the market value of the dwelling at the time you first used it to produce income. You do not have a choice.
A similar rule applies if you inherit a dwelling that was the deceased’s main residence and you use it to produce income.
If you missed the previous three issues, please click here: Issue 1 , Issue 2, Issue 3
Source: Home first used to produce income