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Edited version of your written advice
Authorisation Number: 1051429761189
Date of advice: 21 September 2018
Ruling
Subject: CGT and GST
Question
Are you eligible for the main residence exemption to sale of X property?
Answer 1
Yes. As the dwelling is your main residence, any capital gain or loss can be disregarded as per section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997).
Question 2
Will you make a taxable supply on the sale of X property?
Answer 2
No. Having applied all the principles in MT 2006/1 to the present circumstances, we conclude that the sale of your property, does not amount to an enterprise for GST purposes. The sale of the property will be regarded as the mere realisation of a capital asset.
This ruling applies for the following period:
Year ended 30 June 20xx
The scheme commences on:
x July 20xx
Relevant facts and circumstances
You bought land as joint tenants at the price of $x on xx x 20xx. You began construction of a new residential dwelling on xx x 20x, which was completed on xx x 2018. You moved into the residence on that date.
The cost to build the new dwelling was approximately $x. No input tax credits were claimed on any transactions for the property (neither land purchase not construction costs).
The mortgage is on your personal names.
Due to extreme personal reasons, you want to sell the property.
You operate a partnership, which is registered for GST. Among other activities the business has built and sold x new residential dwelling in the past. Input tax credits were claimed for relevant purchases. The business is currently inactive with no future plan or project.
You do not hold any other real estate properties.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-110
A New Tax System (Goods and Services Tax) Act 1999 Section 9-20
A New Tax System (Goods and Services Tax) Act 1999 Section 195-1