Private ruling: CGT - main residence exemption
Date of advice: 8 August 2017
Published: November 2017
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to a full main residence exemption under section 118-110 of the Income Tax Assessment Act 1997 ? | A1: Yes. A capital gain or loss from a dwelling is ignored for CGT purposes if the taxpayer is an individual, the dwelling was the taxpayer’s main residence throughout the ownership period and the interest did not pass to the taxpayer as a beneficiary in, or as the trustee of, the estate of a deceased person.

Relevant facts and circumstances: You were diagnosed in XXXX with an illness. You decided at that time to sell your main residence and move into a rental property. You then decided to purchase a property in XXXX. You purchased this property in XX XXXX and the property settled in XX XXXX. You moved in as soon as practicable but then became unwell instantly. You had all intentions of this property being your main residence. You now wish to sell this property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-110 | Income Tax Assessment Act 1997 Section 118-135