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Edited version of private advice
Authorisation Number: 1051970626848
Date of advice: 11 April 2022
Ruling
Subject: CGT - 50% discount
Question
Will any capital gain on the sale of the interest in the property you acquired as a tenant in common be a discount capital gain with a discount amount of 50% under Division 115 of the Income Tax Assessment Act 1997?
Answer
Yes, the capital gain on the sale of the interest in the property you acquired more than 12 months before the disposal will be the discount capital gain.
This ruling applies for the following period:
30 June 20XX
The scheme commences on:
XX XXX 20XX
Relevant facts and circumstances
You are an individual and resident of Australia for taxation purposes.
You purchased an off-the-plan land.
You signed a contract for the purchase of land on XX XXXX 20XX.
You paid a 10% deposit.
You will pay the remainder in June 20XX.
Settlement is estimated to be June 20XX or later.
You intend to sell the land in July 20XX which is more than 12 months since you signed the contract.
The cost base of the property will not be indexed.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 115-10
Income Tax Assessment Act 1997 section 115-20
Income Tax Assessment Act 1997 section 115-25
Income Tax Assessment Act 1997 section 115-100