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Edited version of private advice
Authorisation Number: 1051525745401
Date of advice: 1 June 2019
Ruling
Subject: Capital gains tax (CGT) and the main residence exemption
Question
Are you entitled to the main residence exemption and therefore entitled to disregard the capital gain you make on the disposal of your dwelling?
Answer
Yes.
You moved into the property as soon as practicable after purchase. While the property was rented out for a period of time, this period of time was less than six years and the absence rule can apply. Accordingly, the property can be treated as your main residence for capital gains tax purposes for your entire period of ownership and you can disregard the gain made on its disposal. Further information about this discretion can be found by searching 'QC 52189' on ato.gov.au.
This ruling applies for the following period ended:
30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased a property. You moved in immediately upon settlement.
You elected this property as your main residence and did not treat any other property as your main residence for your entire ownership period.
You decided to rent out the property from the period x xxx xxxx until approximately xx xxx xxxx.
You moved back into the property and lived in the property until you later sold the property with settlement occurring on x xxx xxxx.
You are an Australian resident for tax purposes
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-110
Income Tax Assessment Act 1997 Section 118-145