Draft Taxation Determination

TD 94/D98

Income tax: capital gains: can an election made for the purposes of subsection 160ZZQ(11) of the Income Tax Assessment Act 1936 cover more than one period of absence from a taxpayer's sole or principal residence (SPR)?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 95/8.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes. An election under subsection 160ZZQ(11A) made for the purposes of subsection 160ZZQ(11) may cover more than one period of absence from an SPR.

2. It is not necessary to make a separate election for each period of absence.

Example

June's post CGT dwelling ceases to be her SPR and she rents it for two years. She later re-occupies the dwelling for four years, rents it for a further three years, then sells the dwelling.

Provided June satisfies the other requirements in subsection 160ZZQ(11), she only needs to make one election under subsection 160ZZQ(11A) to treat the dwelling as her SPR for the separate periods of absence.

Commissioner of Taxation
15 September 1994

References

ATO references:
NO

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 94/D99

Subject References:
elections
period of absence
principal residence exemption

Legislative References:
ITAA 160ZZQ(11)
ITAA 160ZZQ(11A)

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