Private ruling: Capital gains tax: main residence exemption: first income use rule
Date of advice: 15 August 2019
Published: October 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a calculate your capital gain or capital loss on the property using the special rule for first use to produce income in accordance with section 118-192 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The Commissioner is satisfied that you meet the conditions contained in section 118-192 of the ITAA 1997.

Relevant facts and circumstances: You entered into a contract to purchase the property. The purchase of the property settled. You renovated the property. You moved into the property and resided there for several years. You moved into a rental property and continue to reside there. The rental property was closer to your employment and it cut down on travel time. The property was rented until its subsequent sale. The property was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-192