Edited version of private advice

Authorisation Number: 1052230696790

Date of advice: 12 March 2024

Ruling

Subject: CGT - main residence

Question

Are you entitled to a full main residence exemption on the property?

Answer

Yes.

Based on the information provided to the Commissioner you can apply the main residence exemption to the property to disregard any capital gain that was made when you sold it.

You lived in the property as your main residence up until several years ago when you moved out and commenced renting it out. You continued to treat this property as your main residence.

You moved back into the property for a couple of months as your main residence but were not able to remain there due to personal problems.

You then commenced renting the property out and treating it as your main residence until it was sold.

You had to periods of absence from the property which did not exceed the 6-year limit under Section 118-145 of the ITAA 1997.

You can apply the full main residence exemption to the sale of the property.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You built a property and lived in it as your main residence.

You were required to move out of the property several years ago due to XXXX.

You rented the property out for a couple of years.

You moved back into the property to attempt living in it as your main residence.

You were forced to move out a couple of months after you had moved back into the property.

You commenced renting the property out again until it was sold.

For the periods of absence from the property you treated it as your main residence and each period did not exceed 6 years.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-110

Income Tax Assessment Act 1997 section 118-145