Private ruling: Capital gains tax main residence exemption
Date of advice: 20 February 2026
Published: 7 April 2026
Ruling period: Year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you able to claim a full main residence exemption on the sale of the property? | A1: Yes. Based on the information provided to the Commissioner you are able to claim a full main residence exemption on the sale of the property. Section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that you can disregard a capital gain or capital loss made from a CGT event that happens to a dwelling that is your main residence. To qualify for full exemption, the dwelling must have been your main residence for the whole period you owned it, the ownership period, and must not have been used to produce assessable income. The property was your main residence for the whole of your ownership period as you did not rent the property out and you are electing to treat the property as your main residence for the whole of your ownership period.

Relevant facts and circumstances: You purchased land to build a property. You and your parents moved into the property once the house was built. You moved into the property as soon as practicable after the house was built. The property was not rented out between build completion and you moving in. The property was purchased fully in your name, and the bank loan was fully taken out in your parents' name. A Caveat/Acknowledgement of Debt was signed and lodged with Landgate to acknowledge that you owed your parents the money spent on the purchase of land and building. The property was sold a couple of years ago. You are electing to treat the property as your main residence for the whole of your ownership period. You lived in rental properties and with your partner throughout the ownership period of the property. The property was never rented out. Your parents did not pay you rent when you were not living in the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 subsection 118-145(3)