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Edited version of private advice
Authorisation Number: 1052173077511
Date of advice: 27 September 2023
Ruling
Subject: CGT main residence exemption
Question
Are you entitled to a partial main residence exemption under section 118-185 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. Based on the information provided to the Commissioner, you are entitled to a partial main residence exemption as per section 118-185 of the ITAA 1997. As the property was your main residence for part of your ownership period and was rented out for more than six years, you are entitled to apply the absence rule under section 118-145 of the ITAA 1997 for the six year period. You will need to calculate your partial main residence exemption as follows:
Capital gain × (non-main residence days ÷ Total number of days in your ownership period)
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You purchased the property on DD MM 20YY.
The Property was situated on less than two hectares of land.
The Property was your main residence from settlement until you moved out on DD MM 20YY.
The Property was used for income producing purpose from DD MM 20YY to DD MM 20YY.
The Property was elected as the main residence for the period you were living elsewhere, no other property was being treated as your main residence between DD MM 20YY to DD MM 20YY.
The Property was sold on DD MM 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-145
Income Tax Assessment Act 1997 section 118-185