Private ruling: CGT - main residence exemption
Date of advice: 1 November 2024
Published: 16 December 2024
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you eligible for the main residence exemption on the disposal of the property? | A1: Yes.

Relevant facts and circumstances: You purchased a one quarter interest in the property as tenants in common with your sibling and their spouse on XX XX 20XX. The property is less than 2 hectares. You moved into the property on XX XX 20XX with your two children, your sibling and their spouse. You had separated from your spouse in 20XX and divorced in 20XX. On XX XX 20XX you entered into a contract of transfer with your sibling and their spouse to dispose of your ownership interest in the property to them for $XXXX. The agreed value of the property at them time was $XXXX. The contract of transfer specifies that your relatives would pay out the the loan on the property to the amount of $XXXX and provide a cash advance to you of $XXXX to be paid in three instalments. The dwelling was your main residence throughout your ownership period and never used to produce income. Transfer of the title for the property occurred on XX XX 20XX. On XX XX 20XX you purchased a land/home package and moved into this dwelling once construction was completed on XX XX 20XX. You sold this property on XX XX 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-135 | Income Tax Assessment Act 1997 section 118-140 | Income Tax Assessment Act 1997 section 118-150