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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051265253466

Date of advice: 8 August 2017

Ruling

Subject: CGT - main residence exemption

Question 1

Are you entitled to a full main residence exemption under section 118-110 of the Income Tax Assessment Act 1997?

Answer

Yes.

A capital gain or loss from a dwelling is ignored for CGT purposes if the taxpayer is an individual, the dwelling was the taxpayer’s main residence throughout the ownership period and the interest did not pass to the taxpayer as a beneficiary in, or as the trustee of, the estate of a deceased person.

This ruling applies for the following periods:

Year ending 30 June 2018

The scheme commences on:

1 July 2017

Relevant facts and circumstances

You were diagnosed in XXXX with an illness.

You decided at that time to sell your main residence and move into a rental property.

You then decided to purchase a property in XXXX.

You purchased this property in XX XXXX and the property settled in XX XXXX.

You moved in as soon as practicable but then became unwell instantly.

You had all intentions of this property being your main residence.

You now wish to sell this property.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 118-110

Income Tax Assessment Act 1997 Section 118-135


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