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Edited version of private advice
Authorisation Number: 1051950889667
Date of advice: 21 February 2022
Ruling
Subject: GST - sale of a property
Question
Ruling
Question 1
Will the sale of the property be a taxable supply under Division 9 of the A New Tax System (Goods and Services Tax) Act 1999?
Answer 1
No.
Question 2
Will the sale of the property be treated as sale of capital asset for the purpose of Division 108 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 2
Yes.
This private ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased a piece of land with your spouse.
Construction of a property was completed in XXXX.
Immediately after construction, the property was advertised and available for rent.
The first rental income from property was received in XXXX
The tenant stopped paying rent from XXXX and a dispute begun attempting to have the tenant vacate the property.
Agreement was settled by 'Residential Tenancy Dispute Resolution Scheme' but the tenant did not follow the agreement and remained in dispute.
The tenant vacated the house on XXXX without payment of overdue rent.
You experienced financial and emotional distress as well as health concerns because of the dispute chose to sell the house.
The house was first advertised for sale on XXXX and sold on XXXX resulting in a gain.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Division 9
Income Tax Assessment Act 1997 Division 108