Private ruling: CGT - main residence exemption
Date of advice: 13 April 2023
Published: 29 May 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to the main residence exemption to disregard any capital gain made on your share of the sale of the property? | A1: Yes. Based on the facts provided to the Commissioner you are able to disregard any capital gains tax made on the sale of the property, using the main residence exemption. A capital gain or capital loss you make from a CGT event that happens to your main residence is disregarded if it has been your main residence for the whole of your ownership period and you did not use the property for gaining or producing income. The property has not been used to derive income since you and your sibling inherited the property.

Relevant facts and circumstances: The property was purchased by your parents several decades ago. The property was your parent's main residence until they moved and rented the property out several years later. The property was rented for several years. Your parents separated and title was transferred to one of your parents as part of the separation settlement. You and your sibling along with your parent moved back into the property. Your parent passed away a couple of years later. As part of their estate, you and your sibling were left the property and it could be transferred when you both turned the required age. The property was transferred to you and your sibling in several years ago as tenants in common. After your parent's death you and your sibling moved in with your other parent and the property was rented for a few years. You and your sibling along with your parent moved back into the property after the rental period and you have lived there using the property as your main residence up until the present day. Your sibling moved interstate over a decade ago and maintains a bedroom and possessions at the property. Your sibling contributes to the expenses associated with the property. Your sibling treats the property as their main residence. You and your sibling intend on selling the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195