Private ruling: Capital gains tax
Date of advice: 3 June 2020
Published: July 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to use the CGT main residence exemption absence rule in section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. In your case the property was purchased prior to XX/month/20XX; you will nominate the property as your main residence for the CGT Main Residence exemption. Application of Main Residence exemption will only be able to be claimed for a disposal that occurs up until 30 June 2020. Further information on capital gains tax changes for foreign investors can be found by searching 'QC 52005' on ato.gov.au

Relevant facts and circumstances: You purchased a property (the property) as joint tenants. You both left Australian and ceased being Australian residents for taxation purposes. The property was left vacant until you rented the property to tenants through a real estate agency. The property was tenanted until XXXX. You then sold the property with a settlement in XXXX. You both paid foreign resident capital gains withholding tax on the disposal of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-170 | Income Tax Assessment Act 1997 section 118-185 | Income Tax Assessment Act 1997 section 118-190