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Edited version of your written advice
Authorisation Number: 1051431773675
Date of advice: 21 September 2018
Ruling
Subject: Capital gains tax
Question
Are you able to apply the absence rule for the period you were not living in your main residence and get the main residence exemption?
Answer
Yes. The absence rule allows a taxpayer to choose to treat a dwelling as their main residence even though they no longer live in it. A taxpayer cannot make this choice for a period before a dwelling first becomes their main residence.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You purchased property A in XXXX and lived in this property as your main residence until XXXX.
You purchased and moved into property B.
Property A has been rented since XXXX and you have declared rental property income yearly in your income tax return.
You have elected to treat property A as your main residence.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 118-B
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-145