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Edited version of your written advice
Authorisation Number: 1051387414132
Date of advice: 19 June 2018
Ruling
Subject: Capital gains tax and residency for tax purposes
Question 1
Are you an Australian resident for taxation purposes?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner has determined you are an Australian resident for taxation purposes. Further information on the relevant factors and ‘Work out your residency status for tax purposes’, can be found on our website ato.gov.au and entering QC 33232 into the search bar at the top right of the page.
Question 2
Is the first element of the cost base of the overseas property its market value on the date you became an Australian resident?
Answer
Yes
When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time. Further information on the relevant factors on ‘Changing residency’, can be found on our website ato.gov.au and entering QC 52303 into the search bar at the top right of the page.
This ruling applies for the following period:
30 June 201X
The scheme commences on:
1 July 201X
Relevant facts and circumstances
You were born overseas and classed as a citizen of this country.
While still living overseas you purchased property with relatives. You acquired 50% ownership interest and your relatives the remaining 50% ownership interest. This property was never used as your main residence and produced income from the acquisition date up until when it sold.
You moved to Australia in 20XX and entered the country on a visa under the Migration Act 1958.
You have a spouse, who is an Australian citizen. You have lived together since you moved to Australia and have a rental lease. You have a joint bank account together.
In 20XX you married your spouse who is an Australian citizen.
In 20XX, you disposed of your investment property overseas and did not pay any foreign income tax from this disposal.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 110-35
Income Tax Assessment Act 1997 section 768-950
Income Tax Assessment Act 1997 section 768-955.