Private ruling: CGT - main residence
Date of advice: 3 May 2022
Published: July 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a full main residence exemption for the capital gain made on the disposal of your 100% ownership interest in the property you acquired from your ex-spouse in 20XX? | A1: Yes. In considering your circumstances the Commissioner accepts that in 20XX you acquired 100% ownership interest in the property when your ex-spouse transferred this property to you for nil expenditure as love and affection. The property was valued in 20XX when you acquired your ownership interest. This dwelling was your main residence. Therefore, in your case, when you sold the dwelling in 20XX, you can apply the market value under section 112-20 of the Income Tax Assessment Act 1997 (ITAA 1997) and any capital gains or capital loss can be disregarded under section 118-110 of the ITAA 1997.

Relevant facts and circumstances: Your ex-spouse originally acquired the property in 20XX as sole legal owner. In 20XX you and your ex-spouse separated. Your ex-spouse transferred the property to you in 20XX for nil expenditure as love and affection. The property was valued in 20XX. You acquired the property at this time as sole legal owner, and this became your main residence. You sold the property in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 112-20 | Income Tax Assessment Act 1997 section 118-110