| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051555473787
Date of advice: 15 August 2019
Ruling
Subject: Capital gains tax: main residence exemption: first income use rule
Question
Are you entitled to a calculate your capital gain or capital loss on the property using the special rule for first use to produce income in accordance with section 118-192 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. The Commissioner is satisfied that you meet the conditions contained in section 118-192 of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You entered into a contract to purchase the property.
The purchase of the property settled.
You renovated the property.
You moved into the property and resided there for several years.
You moved into a rental property and continue to reside there.
The rental property was closer to your employment and it cut down on travel time.
The property was rented until its subsequent sale.
The property was sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-192
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
