Private ruling: CGT - main residence exemption
Date of advice: 1 May 2024
Published: 11 June 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the capital gain your client made on the sale of the property disregarded under Section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Based on the information provided to the Commissioner, the capital gain your client made on the sale of the property is disregarded under Section 118-145 of the ITAA 1997.

Relevant facts and circumstances: Your client purchased a property several years ago. Your client moved into the dwelling when the property settled and commenced treating the dwelling as their main residence. Your client moved out of the dwelling a couple of years later and continued to treat the dwelling as their main residence under the absence rule in Section 118-145 of the ITAA 1997. Your client rented the dwelling from the time they moved out. Your client moved back into the dwelling a few years later for a few months and treated it as their main residence. Your client moved out of the dwelling again and it became a rental. Your client considered the dwelling to be their main residence during all the rental periods. An election was made under Section 118-145 of the ITAA 1997 to treat the dwelling as their main residence until it was sold. Your client sold the property in the following year. Your client did not treat any other dwelling as their main residence for the period the dwelling was being rented out.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-145