Private ruling: CGT main residence exemption
Date of advice: 1 March 2021
Published: April 2021
Ruling period: Year ended 30 June 2004 | Year ended 30 June 2005 | Year ended 30 June 2006 | Year ended 30 June 2007 | Year ended 30 June 2008 | Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2003

Ruling: Q1: Will you be exempt from capital gains tax (CGT) on the sale of the property inherited from your parent's deceased estate? | A1: Yes. Section 118-195 of the Income Tax Assessment Act 1997 provides that any capital gain or loss from a CGT event will be disregarded if the dwelling is passed to you as a beneficiary in a deceased estate provided: • the deceased acquired the ownership interest before 20 September 1985; • the dwelling was, from the deceased's death until your ownership interest ends, the main residence of; • the individual who brought about the CGT event whose ownership interest was inherited as a beneficiary. Therefore, you will be exempt from any CGT on the sale of the property that you inherited from your parent's deceased estate, as you met the above criteria.

Relevant facts and circumstances: Your parent purchased a property including a dwelling and XX acres of land prior to 20 September 1985. They died during the year ended 30 June 20XX. Their spouse died prior to 20 September 1985. Your parent lived in the dwelling as their main residence and never used it, or the land, for income producing purposes. Your parent left their five children, including you, as tenants in common for the property with each having equal share in their will. You lived in the dwelling with your parent and continued to live there until the sale of the property. Your siblings did not reside at the dwelling. The dwelling and adjacent XX acres of land have been sold.

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