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Edited version of private advice
Authorisation Number: 1052187631661
Date of advice: 7 November 2023
Ruling
Subject:Pre CGT asset
Question
Will any capital gain or capital loss made on the disposal of the pre-Capital Gains Tax (pre-CGT) dwelling be disregarded?
Answer
Yes. In your case, you acquired the property prior to 20 September 1985.
Section 104-10(5)(a) of the Income Tax Assessment Act 1997 states, 'A capital gain or loss you make is disregarded if you acquired the asset before 20 September 1985'.
The property is a pre-CGT asset, and you can disregard any capital gain or loss you made on the disposal of the property. The acquisition date is not reset by section 855-45 of the Income Tax Assessment Act 1997 when you became an Australian resident.
Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66509'.
This ruling applies for the following period:
XX X XXXX
The scheme commenced on:
XX X XXXX
Relevant facts and circumstances
The title for the property was in your name from XXXX to XX X XXXX.
You lived in the property from the time you were born until X X XXXX.
You migrated to Australia in XXXX.
You sold the residential property in Country A.
The contract of sale for the property was signed on XX X XX.
The signing of the contract of sale and settlement were on the same day as per the Sales Agreement.
You are an Australian Resident for Taxation purposes.
Relevant legislative provisions
Income Tax assessment Act 1997 section 104-10(5)(a)
Income Tax assessment Act 1997 section 855-45(1)