Edited version of private advice

Authorisation Number: 1052290150015

Date of advice: 4 November 2024

Ruling

Subject: CGT - main residence exemption

Question

Are you eligible for the main residence exemption on disposal of the Property?

Answer

Yes, to the extent that you will not treat any other dwelling as your main residence during the entire ownership period of the Property. Furthermore, you will elect to use the absence rule to treat the Property as your main residence from the date you vacated the property to the date of disposal.

This private ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You are a resident of Australia for tax purposes.

In MM 20XX, you purchased the Property. Settlement was due to occur on DD MM 20XX.

You moved your furniture to the Property in anticipation of settlement on DD MM 20XX.You were given keys to the Property prior to settlement.

Settlement of the Property was delayed because you were relying on the sale of another property you own, which was delayed because a caveat had been placed on the Property.

You resided at Property B until the expected settlement date of DD MM 20XX.

Due to the delay in settlement, you had the furniture removed from the Property to a storage facility.

As Settlement was delayed, you temporarily moved to your parent's home.

Settlement of the Property occurred on DD MM 20XX.

On DD MM 20XX, you started to move your furniture back into the Property and you commenced living at the Property.

You connected electricity and gas to the Property. You have provided us with the statement of account.

Your parent suffered a medical event on DD MM 20XX. You advised us that you made a quick decision to make the Property available for rent so you could provide care to your parent.

You contacted the letting agent on or around DD MM 20XX to advertise the Property for rent.

You vacated the Property on DD MM 20XX and moved into your parent's home.

The Property was leased on DD MM 20XX with a commencement date of DD MM 20XX.

Your furniture was removed from the Property on DD MM 20XX. You have provided us with the tax invoice.

You did not change your address on the Australian Electoral Commission roll to the Property.

You did not have your mail directed to the Property.

You resided at the Property for a total of X days during the entire ownership period.

The Property was sold in MM 20XX.

Assumptions

You will not treat any other dwelling as your main residence during the ownership period of the Property.

You will elect to use the absence rule to treat the Property as your main residence from the date you vacated the property to the date of disposal.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section 118-110

Income Tax Assessment Act 1997 section 118-135

Income Tax Assessment Act 1997 section 118-145