| Disclaimer 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 your private ruling
Authorisation Number: 1051689405773
Date of advice: 3 June 2020
Ruling
Subject: Capital gains tax
Question
Are you entitled to use the CGT main residence exemption absence rule in section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. In your case the property was purchased prior to XX/month/20XX; you will nominate the property as your main residence for the CGT Main Residence exemption. Application of Main Residence exemption will only be able to be claimed for a disposal that occurs up until 30 June 2020. Further information on capital gains tax changes for foreign investors can be found by searching 'QC 52005' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased a property (the property) as joint tenants.
You both left Australian and ceased being Australian residents for taxation purposes.
The property was left vacant until you rented the property to tenants through a real estate agency.
The property was tenanted until XXXX.
You then sold the property with a settlement in XXXX.
You both paid foreign resident capital gains withholding tax on the disposal of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-145
Income Tax Assessment Act 1997 section 118-170
Income Tax Assessment Act 1997 section 118-185
Income Tax Assessment Act 1997 section 118-190