Private ruling: Main residence exemption - foreign resident
Date of advice: 31 March 2020
Published: May 2020
Ruling period: Year Ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to apply Main Residence Exemption where the disposal of your portion of a property occurs prior to 30 June 20XX? | A1: Yes. In your case a property was purchased prior to 9 May 2017; you will nominated the property as your main residence for the CGT Main Residence exemption. Application of Main Residence exemption will only be able to be claimed for a disposal that occurs up until 30 June 20XX. Further information on capital gains tax changes for foreign investors can be found by searching 'QC 52005' on ato.gov.au

Relevant facts and circumstances: You are a Foreign Resident for tax purposes. You jointly purchased a property, with your spouse prior to 9 May 2017. You will elect that this property is your Main Residence effective from date of settlement. Your Main Residence has not been used to generate assessable income. You will dispose of your ownership rights in your Main Residence prior to or by 30 June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-170 | Income Tax Assessment Act 1997 section 118-185 | Income Tax Assessment Act 1997 section 118-190