Private ruling: CGT - main residence
Date of advice: 15 June 2022
Published: September 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you apply the main residence exemption to disregard any capital gain made when you dispose of the Property? | A1: Yes. The Property is not more than 2 hectares in area. You have lived there from when you acquired an ownership interest in it and will continue to do so until you sell it. Consequently, you will be entitled to a main residence exemption when you dispose of it.

Relevant facts and circumstances: You are the owner, together with your child, of the Property which is held as tenants-in-common in equal shares. The Property is less than 2 hectares in size. Your child has lived in the Property for brief periods of time. You have continuously lived in the Property since it was purchased and do not own any other property. The Property has never been used to produce assessable income. You wish to move and are attempting to acquire your child's interest in the Property. Once you have acquired your child's interest in the Property you will purchase another property and then sell the Property. You will continue to live in the Property until it is sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110