Taxation Determination

TD 92/174

Income tax: capital gains : how does subsection 160ZZQ(9) interact with subsection 160ZZQ(11)?

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FOI status:

may be releasedFOI number: I 1213480

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue.

1. A dwelling nominated under subsection 160ZZQ(9) may be one which is deemed to be a person's sole or principal residence because of subsection 160ZZQ(11).

Example:

A husband and wife own a pre-CGT house which they both occupy. Due to a change in employment, the husband moves to another town and they acquire another (post-CGT) house on 1 July 1990. The husband occupies this house for 2 years during the course of his employment contract. On 1 July 1992, he returns to the pre-CGT house which he then continues to occupy with his wife.
To obtain a sole or principal residence exemption on disposal of the post-CGT house, both husband and wife would need to make a nomination under subsection 160ZZQ(9) to cover the period 1 July 1990 until disposal. The husband would also need to make a subsection 160ZZQ(11) election in respect of the period 1 July 1992 until disposal. Unless the subsection 160ZZQ(11) election in respect of the post-CGT house is made by the husband to deem it to be his sole or principal residence from 1 July 1992, that house could not continue to be nominated under subsection 160ZZQ(9) by both husband and wife as their sole or principal residence.

Commissioner of Taxation
22/10/92

Previously Draft TD 92/D151

References

ATO references:
NO CGT Cell PRE

ISSN 1038 - 3158

Related Rulings/Determinations:

TD92172;
TD92173

Subject References:
Principal residence exemption;
nominated dwellings

Legislative References:
ITAA 160ZZQ(9);
ITAA160ZZQ(11)

TD 92/174 history
  Date: Version: Change:
You are here 22 October 1992 Original ruling  
  29 November 2006 Original ruling + note Repeal provision note
  10 March 2010 Consolidated ruling Addendum

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