Private ruling: Capital gains tax - pre-CGT asset
Date of advice: 12 February 2020
Published: March 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will any capital gain or capital loss made on the disposal of the pre-Capital Gains Tax (pre-CGT) dwelling be disregarded? | A1: Yes. A capital gain or capital loss you make can be disregarded when you dispose of your interest in a asset if you acquired the asset before 20 September 1985. In your case you purchased your interest in the dwelling in 1980 and you when sell your interest in the dwelling you will be able to fully disregard any capital gain or capital loss that may occur.

Relevant facts and circumstances: You were an Australian resident for tax purposes when you purchased your interest in a property jointly before 20 September 1985. Your employer moved you overseas to work in 19XX. You have lived overseas since and will continue to live overseas indefinitely. The dwelling has been rented since 19XX. You are now a non-resident of Australia for tax purposes. You and your spouse are considering selling your interest in the dwelling sometime in the future.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 149-10