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Edited version of private advice
Authorisation Number: 1051978852506
Date of advice: 11 May 2022
Ruling
Subject: CGT - main residence - absence choice
Question
Can the main residence exemption be applied to the Dwelling for the period from XX January 19XX to XX January 20XX?
Answer
Yes.
It is accepted that you meet the conditions for the main residence exemption to be applied because the combined periods that you resided in the Dwelling and any choices that you made covered the entire period.
This ruling applies for the following period:
Year ending 30 June 2021
The scheme commences on:
30 January 19XX
Relevant facts and circumstances
Sometime after 20 September 1985 you acquired a dwelling (the Dwelling).
Settlement occurred. You moved in the next day and occupied the Dwelling as your main residence.
You did not own any other property.
On X August 20XX you moved out.
You made the absence choice to continue to treat the Dwelling as your main residence.
The Dwelling was available for rent and/or rented out for a period of less than six years.
On the XX September 20XX you reoccupied the Dwelling. You went on an overseas working holiday shortly after.
The Dwelling was available for rent from XX September 20XX. It was rented from late September 20XX.
You intended to be away for 12 months and then return to your Dwelling, however you returned after nine months instead.
Upon your return to Australia, you stayed with your elderly parent while waiting for the tenant's lease to be up so you could move back into the Dwelling.
After discussions with your siblings, you made the decision to continue living with your elderly parent to help with their care in their old age.
The Dwelling continued to be rented out until XX October 20XX.
You moved back into the Dwelling. You remined living there until May 20XX. You intended to continue living there but again your elderly parent required assistance with their care so you moved back in with them.
You made the absence choice to continue to treat the Dwelling as your main residence.
The Dwelling was rented out or available to be rented out for a period of less than six years.
Dwelling was then left vacant for a few months.
You moved back into the Dwelling at the beginning of October 20XX and lived there until XX December 20XX.
The Dwelling was available for rent/and or being actually rented for a period exceeding six years.
You have remained your parent's carer for many years. Your parent is currently XX years old and you continue to live with them.
From XX May 20XX the Dwelling was vacant and not available for rent.
The Dwelling was sold with settlement occurring.
You made a capital gain on the disposal of the Dwelling.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 118-110
Income Tax Assessment Act 1997 Section 118-145