Private ruling: Capital gains tax - marriage breakdown
Date of advice: 14 September 2020
Published: October 2020
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017
Date scheme commenced: 1 July 2015

Ruling: Q1: Will the marriage breakdown rollover provisions apply to you to disregard the capital gain on the disposal of the property? | A1: Yes. You and your ex-spouse entered into a binding financial agreement made under the Family Law Act 1975. You transferred your ownership interest to your ex-spouse. As such the marriage breakdown rollover provision under section 126-5 of the Income Tax Assessment Act 1997 will apply, allowing you to disregard any capital gain or capital loss made from the transfer of your interest in the property to your ex-spouse.

Relevant facts and circumstances: You and your ex-spouse purchased joint property as your main residence. In 20XX, you separated from your ex-spouse. No cohabitation was resumed. In 20XX, you and your ex-spouse executed a binding financial agreement. The Settlement of Assets was filed in the Family Court. You were paid an amount. In 20XX you transferred your ownership interest to your ex-spouse.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 126-5