Taxation Ruling

IT 15H - Notice of Archival

Sale of property within 12 months of purchase: application of section 26AAA(5)(c)

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FOI status:

may be released

Notice of Archival

Taxation Ruling IT 15 is no longer current and has been archived.

The ruling dealt with the application of paragraph 26AAA(5)(c) of the Income Tax Assessment Act 1936 (the Act) following a Board of Review decision reported as Case 2 (1981) 25 CTBR(NS) 7; Case N48, 81 ATC 239.

In that case the Board held that the taxpayer had sold his residence within 12 months of its purchase as a result of a change in the place of employment or a place of business within the meaning of paragraph 26AAA(5)(c). This meant that the profit arising from the sale of the property was exempt from being assessed under subsection 26AAA(2) of the Act.

Section 26AAA only applies to the sale of property, or of an interest in property, that occurs on or before 25 May 1988.

The sale of such property after 25 May 1988 may be subject to Part IIIA (Capital Gains and Capital Losses) of the Act.

Commissioner of Taxation
10 November 1994

References

ATO references:
NO CASAPRE

Related Rulings/Determinations:

IT 15

Case References:
Case N48
81 ATC 239