Private ruling: Capital gains tax exemption (main residence)
Date of advice: 27 May 2020
Published: July 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 31 August 1988

Ruling: Q1: Will the main residence exemption in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to the sale of the property in suburb X (the property) so that any capital gain or capital loss made on the sale is disregarded? | A1: Yes, the main residence exemption will apply to the sale of the property under this section of the Income Tax Assessment Act 1997 once the property is sold.

Relevant facts and circumstances: The Property was purchased and solely owned by the deceased until their passing. The deceased passed away intestate. Letters of Administration were granted to you by the Supreme Court in mid 19XX for the estate. Title for the property was transferred and registered in your name mid 19XX. The property was yours and the deceased main residence prior to the deceased passing and has continued to be your main residence. The property will have been your main residence from the deceased death up until your ownership interest ends. The property was not used by the deceased or yourself at any time to produce income. The deceased was an Australian resident for tax purposes. You are an Australian resident for tax purposes. You now wish to sell the property and distribute the proceeds of the sale as set out in a Deed of Family Arrangement between yourself and the deceased's children.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-1195