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Edited version of private advice
Authorisation Number: 1051703797845
Date of advice: 24 June 2020
Ruling
Subject: Capital gains tax - main residence exemption
Question
Is any capital gain made on the disposal of the Property disregarded under section 118-210 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. The Trustee acquired the Property in accordance with the will for the occupation by a beneficiary. That beneficiary occupied the dwelling for the entire ownership period. Accordingly, the Estate can disregard any capital gain made on the disposal of the Property under subsection 118-210(3) of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away on XX month XXXX.
The deceased left a will and appointed trustees of the residual of the estate.
The deceased and dependant owned a property.
The property was sold.
The trustee and dependant acquired a property.
The Will provides for dependants.
The property was sold by way of contract of sale, dated XX month XXXX.
On sale of the property a profit was derived of which an amount is attributable to the Trust and is attributable to the dependant.
At all times from the date of acquisition of the property to the date of contract of sale, the property was the dependant's main residence and was never used for income producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10(1)
Income Tax Assessment Act 1997 section 104-10(4)
Income Tax Assessment Act 1997 subdivision 109-A
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-210(1)
Income Tax Assessment Act 1997 section 118-210(3)