| 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 private advice
Authorisation Number: 1051754810668
Date of advice: 14 September 2020
Ruling
Subject: Capital gains tax
Question
Can you disregard any capital gain or capital loss on the sale of your property?
Answer
Yes
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You and your spouse purchased the property before 1985.
You have been living in the property as your main residence since the date of purchase.
You do not choose another property as your main residence.
The Council rezoned the area (which includes your property), which means that your property has been rezoned to commercial.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 108-5
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 104-10(5)
Reasons for decision
Section 102-20 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that you make a capital gain or loss as a result of a CGT event happening to a CGT asset in which you have an ownership interest.
Buildings and land are CGT assets as defined under section 108-5 of the ITAA 1997 and the disposal of a CGT asset triggers a CGT event A1 under section 104-10 of the ITAA 1997.
Subsection 104-10(5) of the ITAA 1997 contains an exception, where any capital gain or capital loss made is disregarded if the asset was acquired before 20 September 1985.
In your case, you and your spouse acquired the property before 1985. Therefore, you can disregard any capital gain or capital loss on the sale of your property.