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Edited version of private advice
Authorisation Number: 1051809449299
Date of advice: 1 March 2021
Ruling
Subject: CGT main residence exemption
Question
Will you be exempt from capital gains tax (CGT) on the sale of the property inherited from your parent's deceased estate?
Answer
Yes.
Section 118-195 of the Income Tax Assessment Act 1997 provides that any capital gain or loss from a CGT event will be disregarded if the dwelling is passed to you as a beneficiary in a deceased estate provided:
• the deceased acquired the ownership interest before 20 September 1985;
• the dwelling was, from the deceased's death until your ownership interest ends, the main residence of;
• the individual who brought about the CGT event whose ownership interest was inherited as a beneficiary.
Therefore, you will be exempt from any CGT on the sale of the property that you inherited from your parent's deceased estate, as you met the above criteria.
This ruling applies for the following periods:
Year ended 30 June 2004
Year ended 30 June 2005
Year ended 30 June 2006
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
Year ended 30 June 2019
Year ended 30 June 2020
Year ending 30 June 2021
Year ending 30 June 2022
The scheme commences on:
1 July 2003
Relevant facts and circumstances
Your parent purchased a property including a dwelling and XX acres of land prior to 20 September 1985.
They died during the year ended 30 June 20XX.
Their spouse died prior to 20 September 1985.
Your parent lived in the dwelling as their main residence and never used it, or the land, for income producing purposes.
Your parent left their five children, including you, as tenants in common for the property with each having equal share in their will.
You lived in the dwelling with your parent and continued to live there until the sale of the property.
Your siblings did not reside at the dwelling.
The dwelling and adjacent XX acres of land have been sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195