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Edited version of private advice
Authorisation Number: 1051960393156
Date of advice: 27 April 2022
Ruling
Subject: Main residence exemption - CGT - absence rule
Question 1
Can you choose to continue to treat the property located at XXXX as your main residence under section 118-145 of the Income Tax Assessment Act 1997 for the periods the property was not inhabited by you?
Answer
Yes. However, if you are a foreign resident at the time you dispose of the property you will not be entitled to disregard any capital gain or capital loss under section 118-110 of the Income Tax Assessment Act 1997 unless you satisfy the life events test.
This ruling applies for the following periods:
Year ended DD/MM/YYYY
Year ended DD/MM/YYYY
The scheme commences on:
DD/MM/YYYY
Relevant facts and circumstances
The taxpayers purchased their main residence property.
The taxpayers were residents of Australia at this time.
The taxpayers moved out.
The property was rented out for less than six years.
During this time the taxpayers did not use any other property as their main residence.
The taxpayers moved back into the property.
For several years the property continued to be the taxpayers' main residence.
The taxpayers moved out again.
For several years the property was not used to produce income.
For approximately one year the property was used to produce income.
The taxpayers moved back into the property and it is their main residence.
The taxpayers did not treat any other dwelling as their main residence during the time the property was not inhabited by them.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-145