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Edited version of private advice
Authorisation Number: 1052353117023
Date of advice: 23 January 2025
Ruling
Subject: CGT - pre-capital gain asset
Question 1
Is the dwelling a separate capital gains tax (CGT) asset to the land on which it is constructed in accordance with section 108-55 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. The dwelling that you constructed on the land is not considered to be a separate CGT asset as you began construction prior to 20 September 1985.
Question 2
Is the land and dwelling on the property subject to CGTunder section 104-10 of the ITAA 1997?
Answer
No. Any gains from the disposal of the land and dwelling are disregard as the asset was acquired prior to 20 September 1985.
This ruling applies for the following period:
Period ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You are the owner of a duplex property, which you provided us with the address of.
You acquired the land prior to 20 September 1985.
You were issued a build licence on a specified date prior to 20 September 1985 as an owner-builder by the council to build a duplex.
You began construction of the duplex prior to 20 September 1985 with the laying of a footing and concrete slab.
You provided us with the following supporting documents:
• A copy of the settlement contract for the land
• A copy of your building license
• A copy of a letter from council confirming the footing and slab inspection
You intend to sell the duplex during the ruling period.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 108-55