Private ruling: Capital gains tax – main residence exemption
Date of advice: 14 October 2017
Published: March 2018
Ruling period: 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Are you entitled to apply the main residence exemption on the disposal of your property? | A1: Yes Having considered your circumstances and the relevant factors, you can fully disregard any capital gains tax under section 118-110 of the Income Tax Assessment Act 1997 . Further information on ‘treating a dwelling as your main residence after you move out’ can be found on our website ato.gov.au and entering Quick Code (QC) 52189 into the search bar at the top right of the page.

Relevant facts and circumstances: In 20XX you purchased a property with a relative, each having 50% ownership and moved into the dwelling as soon as practicable, and treated this as your main residence. You resided at this property for three years. You rented out the property for four years and in 20XX you acquired the other 50% off your relative giving you 100% ownership. You returned to the dwelling in 20XX and remained there for approximately nine months. You vacated the property in 20XX to live elsewhere and rented the property until it was sold in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10, | Income Tax Assessment Act 1997 section 118-110 and | Income Tax Assessment Act 1997 section 118-145.