Private ruling: CGT - main residence exemption
Date of advice: 17 September 2024
Published: 28 October 2024
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you claim the full main residence exemption provided in section 118-110 of the Income Tax Assessment Act 1997 (ITAA 1997) and disregard any capital gain made on the sale of your property? | A1: Yes.

Relevant facts and circumstances: The property is located as XXXX (Property A). You purchased Property A on DD MM 20YY and moved in on this date. You moved out of Property A on DD MM 20YY and moved into Property B on DD MM 20YY. You have no legal ownership share in Property B. Between the date you moved in and the date you moved out of Property A, you did not derive any assessable income from the property (such as rental income). From the date you moved into Property A, you have claimed this property as your Main Residence. On DD MM 20YY you began renting out Property A. The property will continue to be rented out from this date until the date the property is sold. You will not return to reside in Property A, and you will continue to claim the Main Residence Exemption on Property A. Property A will be sold on or before the six-year anniversary of the rental period beginning.

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