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Edited version of private advice
Authorisation Number: 1051753380329
Date of advice: 14 September 2020
Ruling
Subject: Capital gains tax - marriage breakdown
Question
Will the marriage breakdown rollover provisions apply to you to disregard the capital gain on the disposal of the property?
Answer
Yes. You and your ex-spouse entered into a binding financial agreement made under the Family Law Act 1975. You transferred your ownership interest to your ex-spouse. As such the marriage breakdown rollover provision under section 126-5 of the Income Tax Assessment Act 1997 will apply, allowing you to disregard any capital gain or capital loss made from the transfer of your interest in the property to your ex-spouse.
This ruling applies for the following periods:
Year ended 30 June 2016
Year ended 30 June 2017
The scheme commences on:
1 July 2015
Relevant facts and circumstances
You and your ex-spouse purchased joint property as your main residence.
In 20XX, you separated from your ex-spouse.
No cohabitation was resumed.
In 20XX, you and your ex-spouse executed a binding financial agreement.
The Settlement of Assets was filed in the Family Court.
You were paid an amount.
In 20XX you transferred your ownership interest to your ex-spouse.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 126-5