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Edited version of private advice
Authorisation Number: 1051799174816
Date of advice: 22 January 2021
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 9 May 2017 and nominated 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 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You purchased the property in XXXX and it was your main residence.
You left Australian and ceased being an Australian resident for taxation purposesinXXXX.
The property was rented to tenants through a real estate agency.
The property was tenanted until XXXX.
You then sold the property with settlement in XXXX.
You 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