Private ruling: Capital gains tax
Date of advice: 13 November 2020
Published: January 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Is the property exempt from CGT under section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The Commissioner accepts that you do not have legal ownership of any additional properties, therefore you are able to make use of the absence rule to fully disregard any capital gain you have incurred on the sale of the property.

Relevant facts and circumstances: On the XXXX you purchased the property. The property was your main residence. In XXXX you entered a relationship with your partner. In XXXX you moved into your partners property (property two). The property was rented to tenants and you declared this income on your income tax returns (ITR). On XXXX you moved back to the property due to a relationship breakdown with your partner. You reconciled with your partner and moved back into property two and the property was again rented to tenants. You listed the property for sale. The property was sold on XXXX. Your partner is the sole owner of the property two. You do not have legal ownership of property two or any other property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-145