Income tax: capital gains : does the principal residence exemption extend to additional land acquired after the time of acquisition of the residence?
Please note that the PDF version is the authorised version of this ruling.This document has changed over time. View its history.
FOI status:may be releasedFOI number: I 1213449
|This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue.|
- the additional land is adjacent to that on which the dwelling is situated;
- the total area of land is not greater than 2 hectares;
- the additional land is used primarily for private or domestic purposes in association with the dwelling; and
- the additional land is not sold separately from the dwelling.
Example: Tom and Mary purchase a home in 1987 and occupy it as their sole or principal residence. The home has never been used for income producing purposes.In 1989, they purchase the adjoining vacant block of land on which they construct a private swimming pool. The total of the area of additional land and the area of the land on which the home is situated is less than 2 hectares. In 1991, they enter into a contract to sell the home with the adjoining block.A full principal residence exemption is available.
Commissioner of Taxation
Previously Draft TD 92/D152
NO CGT Cell PRE
Principal residence exemption;
separately acquired land