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Edited version of private ruling
Authorisation Number: 1011537979195
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Ruling
Subject: Capital gains: Pre-CGT asset
Do you include a capital gain or loss on the share of property you acquired before 1980?
No.
This ruling applies for the following period
30 June 2011
The scheme commenced on
1 July 2010
Relevant facts and circumstances
You inherited a property prior to 1980.
The property was not used as your main residence.
You sold an interest in the property to your spouse after 1985.
You intend to sell the property.
Relevant legislative provisions
Section 102-20 Income Tax Assessment Act 1997
Section 104-10 Income Tax Assessment Act 1997
Reasons for decision
Capital gains tax
A capital gain or capital loss is made when a capital gains tax (CGT) event happens to a CGT asset. A CGT event occurs when there is a change in legal ownership of a CGT asset.
However, there is generally an exception for pre-CGT assets; that is those assets acquired prior to 20 September 1985.
In your case, you acquired a property before 1980, you sold part of the property after 1985. The part of the property which you retained maintains its pre-CGT asset status, therefore the capital gain or capital loss on your remaining share is not included in your assessable income.
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