Private ruling: Capital gains tax
Date of advice: 20 December 2017
Published: May 2018
Ruling period: Financial year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will you be able to apply the full main residence exemption to a capital gain or loss you make on sale of the property pursuant to sections 118-110 and 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes Having considered your circumstances and the relevant factors the Commissioner has determined that full main residence exemption would apply under sections 118-110 and 118-145 of the ITAA 1997. Further information on the main residence exemption and absences can be found on our website ato.gov.au and entering Quick Code QC 17185 into the search bar at the top right of the page.

Relevant facts and circumstances: You purchased a property in 1998. For 10 years the property was your main residence. You then rented the property out for two years. You returned to live in the property as your main residence for two years. You have now rented the property out again. You will sell the property within six years of renting the property out again. You have not treated any other property as your main residence during the periods the property has been rented out.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-110 | Income Tax Assessment Act 1997 Section 118-145