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Edited version of private advice
Authorisation Number: 1052217615917
Date of advice: 31 January 2024
Ruling
Subject: CGT asset - disposal
Question
Will any capital gain or capital loss made on the disposal of the pre-Capital Gains Tax (Pre-CGT) property be disregarded?
Answer
Yes.
You acquired the property prior to 20 September 1985.
Subsection 104-10(5) of the Income Tax Assessment Act 1997 states that 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. Further information regarding CGT on sale of properties can be found by searching our website (www.ato.gov.au) for QC 59553 - Tax time toolkit for investors.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You purchased a property (the Property) prior to 20 September 1985.
You resided in the Property for XX years, from the date of acquisition.
The Property was then used as an investment and used to earn assessable income.
During your ownership period, you did not make any capital improvements to the Property.
You disposed of the Property.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-10(5)