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Edited version of private advice
Authorisation Number: 1051930625570
Date of advice: 7 December 2021
Ruling
Subject: CGT - inherited dwelling
Question
Is the capital gain or loss on the disposal of the property disregarded?
Answer
Yes.
You inherited your share of the property on the death of your parent and, as it was their main residence just before their death, was not then being used to produce assessable income and was disposed of within two years of their death, the capital gain or loss on the disposal is disregarded under section 118-195 of the Income Tax Assessment Act 1997.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your parent purchased a property to be the main residence of them and their spouse.
The parent passed away and in accordance with their last will and testament, the entirety of the estate was left to their spouse.
Your remaining parent passed away and in accordance with their last will and testament, the entirety of their estate was left to their children as tenants in common in equal shares.
The property was always used as your parents' main residence, and it was not used to produce assessable income.
You and your siblings sold the property a few months after your remaining parent's passing.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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