Private ruling: Capital gains tax (CGT) main residence exemption
Published: March 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2010.

Ruling: Q1: Can you choose the Property as your main residence for the entire ownership period pursuant to paragraph 118-170(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. | Q2: Will you be able to apply the full main residence exemption to a capital gain or loss you make on sale of the Property pursuant to section 118-110 of the ITAA 1997? | A2: Yes. Having regard to your full circumstances, it is accepted that you and your spouse can elect to treat the Property as your main residence in accordance with section 118-170 of the ITAA 1997. You are entitled to the main residence exemption under section 118-110 of the ITAA 1997 and the gain or loss made on the sale of the Property is disregarded.

Relevant facts and circumstances: You and your spouse are married. In 20XX you and your spouse purchased the Property in equal shares. The Property is situated on a block less than 2 hectares in size. Your spouse has lived in the Property from the time that it was acquired. Since at least 20XX, you have been living and working in a country other than Australia. You have a dwelling in the country outside of Australia that you reside in and treat as your main residence. You are a non-resident of Australia for tax purposes. You did not move into the Property as soon as is practicable. You have stayed in the Property for only short periods whilst visiting Australia once or twice a year, but have not lived there on an ongoing basis. You intend to return to Australia to reside and retire in a retirement village, where you have already lodged an expression of interest. The Property is currently under a contract for sale.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-170. | Income Tax Assessment Act 1997 section 118-110.


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