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Edited version of private ruling
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Ruling
Subject: Main residence in relation to capital gains
Question:
Can you be considered to have established your property in an Australian city as your main residence?
Answer:
Yes.
This ruling applies for the following period:
Year ended 30 June 2010
The scheme commenced on:
1 July 2009
Relevant facts:
You entered into a contract to purchase a property in an Australian city.
It was your intention to move into the property on settlement and live there indefinitely.
You began to change your address details with various parties.
During the settlement period for the property, you were offered an interstate work relocation.
Before settlement was completed you accepted the interstate job offer.
Before settlement was completed you approached a real estate agent to manage the rental of this property.
Settlement was completed on the property.
You were a single person and did not reside with any immediate family at the time.
Just prior to the purchase of this property you were living in shared accommodation and had been utilising minimal personal items of furniture such as bed, fridge, television etcetera.
You moved into the property with your limited items of furniture on the evening settlement was completed.
You did not connect the fixed land line but instead used your mobile phone during your stay in the property.
The electricity had not been disconnected by the supplier so you maintained use of this for the period of your stay.
You ceased the change of address process on accepting the interstate relocation and began to reverse any changes you had made. You retained a PO Box until your interstate address was known.
You moved out of the property less than two weeks later.
A tenant took possession of the property the day after you moved out.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Subdivision 118B
Reasons for decision
Establishment of a main residence
The Commissioner's view on the factors which need to be taken into account when determining whether or not a dwelling is considered to be your main residence is set out in the Guide to capital gains tax 2009-10.
The following factors may be relevant in working out whether a dwelling is your main residence:
§ the length of time you live there (there is no minimum time a person has to live in a home before it is considered to be their main residence)
§ whether your family lives there
§ whether you have moved your personal belongings into the home
§ the address to which your mail is delivered
§ your address on the electoral roll
§ the connection of services (for example, phone, gas or electricity)
§ your intention in occupying the dwelling.
Your circumstances
You entered the contract to purchase the property with every intention of making it your home indefinitely. An unforeseen relocation of your employment prevented this from happening. You still moved into the property and lived there for less than two weeks before moving interstate. As there is no minimum time a person has to live in a home before it is considered to be their main residence, it can be taken that this was considered your main residence during this period. You were a single person at the time and therefore did not have immediate family to reside with. You moved the limited personal belongings that were in your possession into the property with you. You had begun to update your mailing address to the new property prior to accepting the interstate transfer. You did not need to connect any services because you utilised your mobile phone for communication and the electricity was already connected.
After reviewing your circumstances, on balance it is considered that you did establish the property as your main residence during the period that you resided there.