Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051635639127
Date of advice: 12 February 2020
Ruling
Subject: Capital gains tax - pre-CGT asset
Question
Will any capital gain or capital loss made on the disposal of the pre-Capital Gains Tax (pre-CGT) dwelling be disregarded?
Answer
Yes. A capital gain or capital loss you make can be disregarded when you dispose of your interest in a asset if you acquired the asset before 20 September 1985. In your case you purchased your interest in the dwelling in 1980 and you when sell your interest in the dwelling you will be able to fully disregard any capital gain or capital loss that may occur.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were an Australian resident for tax purposes when you purchased your interest in a property jointly before 20 September 1985.
Your employer moved you overseas to work in 19XX. You have lived overseas since and will continue to live overseas indefinitely.
The dwelling has been rented since 19XX.
You are now a non-resident of Australia for tax purposes.
You and your spouse are considering selling your interest in the dwelling sometime in the future.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 149-10