Private ruling: Capital gains tax
Date of advice: 27 September 2018
Published: November 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Can you disregard the capital gain made on the disposal of your main residence under the six year absence rule? | A1: Yes. You won’t have a capital gain on the disposal of the property, as you did not treat any other dwelling as your main residence and for the purpose of producing assessable income; the maximum period was less than six years. Further information can be found by searching 'QC 52191 on ato.gov.au

Relevant facts and circumstances: You purchased property in 20XX and moved in making this your principal place of residence. You purchased this property as a tenant in common and you had a higher percentage ownership interest than your spouse. You intended to remain at this dwelling, but due to work commitments you moved out of the dwelling in 20XX and into a rental property. You commenced renting out your property in 20XX up until the property was sold. Due to your work commitments you relocated to another state for approximately 18 months. When you returned to your home state in 20XX, you did not return to your principal place of residence. You did not treat any other dwelling as your main residence. You disposed of your ownership interest in the property 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.