Private ruling: CGT - main residence exemption
Date of advice: 18 November 2024
Published: 13 January 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 XX 20XX

Ruling: Q1: Are you eligible for the main residence exemption on disposal of the property pursuant to section 118-195 of the Income tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. As the property remained the main residence of the deceased and was not used for income producing activities at the time of death, any capital gain or loss on the disposal of the property can be disregarded.

Relevant facts and circumstances: The deceased passed away on XX XX 20XX. At date of death, the deceased was the sole owner of a property. The deceased acquired the property before 20 September 1985. The property was the main residence of the deceased from the purchase date until the date of death. The property's land area is less than 2 hectares. Some improvement to the approximate value of $XX were completed on the property in 19XX. About a decade ago, the deceased had boarders living in the property with them for a short period. Food laundry and lodging were provided for a reimbursement of expenses. The property was transmitted into the name of the executor on or around XX XX 20XX. The property was sold at auction on XX XX 20XX. The sale was completed on XX XX 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195