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Edited version of private advice
Authorisation Number: 1051845048089
Date of advice: 1 June 2021
Ruling
Subject: Capital gains tax
Question
Will any capital gain or loss you make from the sale of your house be disregarded?
Answer
Yes
You are entitled to the full main residence exemption because:
• you are an individual
• the house was your main residence for capital gains purposes throughout your period of ownership, and
• the land sold with the house is less than two hectares.
The effect of making the absence choice is that the house continues to be your main residence for capital gains purposes from when you moved out of it until you sold it.
This ruling applies for the following period:
Year ending 30 June 2021
The scheme commences on:
2020
Relevant facts and circumstances
• You purchased the house about 10 years ago.
• The house was your main residence until about five years ago.
• Due to one of your family member's medical conditions, you relocated to a relative's house.
• The house was rented out to tenants once you moved out and until just before its sale.
• The house entered into a contract of sale recently and settlement occurred shortly afterwards.
• You elected to use the absence choice to treat your house as your main residence for the whole period it was rented out.
• The land adjacent to the house is less than two hectares.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110.
Income Tax Assessment Act 1997 section 118-145.
Income Tax Assessment Act 1997 subsection 118-190(3).