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Edited version of your private ruling
Authorisation Number: 1012122259527
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Subject: Capital gains tax - disposal of property acquired before 20 September 1985
Question: Is the capital gain or capital loss made on the disposal of the property you acquired in 1980 disregarded?
Answer: Yes.
This ruling applies for the following period
Year ending 30 June 2012
Year ending 30 June 2013
The scheme commenced on
1 July 2011
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
Some time prior to 20 September 1985, your parents transferred their family home (the property) into your name.
Your parents are now both deceased.
Some years ago, your spouse passed away.
You have decided to dispose of both your main residence and the property.
You have provided a copy of the following documentation to support your application and these documents are to be read with and forms part of your application for the purpose of this ruling:
· copy of the property title.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10
Reasons for decision
The most common capital gains tax (CGT) event, CGT event A1, occurs when you dispose of a CGT asset. The time of the event is when you enter into the contract for the disposal or if there is no contract - when the change of ownership occurs.
CGT event A1 will occur when you dispose of the property.
However, any capital gain or capital loss made in relation to an asset acquired prior to
20 September 1985, is disregarded.
As you acquired the property prior to 20 September 1985, any capital gain or capital loss made on its disposal is disregarded.