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Edited version of your written advice
Authorisation Number: 1051450174169
Date of advice: 7 November 2018
Ruling
Subject: Main residence exemption
Question
Will the Commissioner consider both units to be as one dwelling for you for the purpose of the main residence exemption during the ownership period XXXX to XXXX?
Answer
Yes. After considering the facts and circumstances, the Commissioner considers that you treated the two dwellings as one during the relevant ownership period. Further information about defining one dwelling can be found by searching ’QC 22169’ on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
XX December 20XX
Relevant facts and circumstances
You purchased your unit in the 20XX calendar year, where you lived with your children. This property was your main residence.
Your partner acquired the neighbouring unit with settlement. The apartment was purchased with the intent of combining both units together, so that your families could live together as one family in one large combined apartment.
You utilised both units as one dwelling during your occupancy by completing the following works:
● creating a new opening in the adjoining wall between the two living areas
● converting the existing Kitchen in your partners unit into a study
● closing the external access to your partners unit.
Following a decision to sell your unit in late 20XX, work was undertaken to restore the two units to separate properties, in their original configurations.
You sold your unit.
Relevant legislative provisions
Income Tax Assessment Act of 1997 section 118-115
Income Tax Assessment Act of 1997 section 118-170