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Edited version of private advice
Authorisation Number: 1051862557409
Date of advice: 15 July 2021
Ruling
Subject: CGT - main residence exemption
Question
Are you able to claim a full main residence exemption for the sale of your property under section 118-110 of the Income Tax Assessment Act 1997?
Answer
Yes. This property was your main residence throughout your ownership period, and you were an Australian resident for tax purposes when the property was sold, you are entitled to a full deduction. This is because for the periods you were absent the property was not utilised for income producing purposes, and you did not select another residence as your main residence for CGT purposes.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased the Property on XX XXXX 20XX.
You worked overseas for several years and did not live in the Property for these periods; however, the property was not rented out during these periods.
You were a non-resident of Australia for tax purposes from XX XXXX 20XX, until you returned to Australia on XX XXXX 20XX.
On your return to Australia you recommenced living at the Property.
You resided in Australia for the entire financial year ended 30 June 20XX.
You entered a contract to sell the Property on XX XXXX 20XX, with a settlement date of XX XXXX 20XX.
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