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Edited version of private advice
Authorisation Number: 1052093923809
Date of advice: 8 March 2023
Ruling
Subject: CGT - main residence
Question
Is any capital gain or capital loss you made due to the sale of the property disregarded?
Answer
Yes.
A capital gain or capital loss you make from a capital gains tax (CGT) event that happens in relation to a CGT asset that is a dwelling or your ownership interest in it is disregarded if:
• you are an individual; and
• the dwelling was your main residence throughout your ownership period; and
• the interest did not pass to you as a beneficiary in, and you did not acquire it as a trustee of, the estate of a deceased person.
Having considered the relevant factors, the Commissioner accepts that you moved into the property as soon as practicable after settlement, and that you occupied it as your main residence. You continued to treat the property as your main residence, under section 118-145 of the Income Tax Assessment Act 1997, after you moved out and until settlement occurred. You were entitled to continue treating the property as your main residence for more than 6 years because it was not used to produce assessable income.
This ruling applies for the following period:
The year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You acquired the property after 20 September 1985.
The property was less than two hectares in size.
You moved into the property soon after you purchased it.
You lived in the property on a full-time basis until MM/YYYY. At this time, you moved into your parent's home.
You did not have an ownership interest in your parent's home.
You continued to treat the property as your main residence after you moved out.
You maintained the property for your personal use while you lived at your parent's home.
You would stay at the property occasionally.
You kept personal possessions at the property until it was sold.
You did not rent the property out during your ownership period.
You did not own any other property while owning the property.
You provided evidence that the property was your address for numerous agencies and services.
You entered into a contract to sell the property, with settlement occurring on DD/MM/YYYY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-135
Income Tax Assessment Act 1997 section 118-145