Private ruling: Main residence exemption
Date of advice: 7 November 2018
Published: February 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: XX December 20XX

Ruling: Q1: Will the Commissioner consider both units to be as one dwelling for you for the purpose of the main residence exemption during the ownership period XXXX to XXXX? | A1: Yes. After considering the facts and circumstances, the Commissioner considers that you treated the two dwellings as one during the relevant ownership period. Further information about defining one dwelling can be found by searching ’QC 22169’ on ato.gov.au.

Relevant facts and circumstances: You purchased your unit in the 20XX calendar year, where you lived with your children. This property was your main residence. Your partner acquired the neighbouring unit with settlement. The apartment was purchased with the intent of combining both units together, so that your families could live together as one family in one large combined apartment. You utilised both units as one dwelling during your occupancy by completing the following works: ● creating a new opening in the adjoining wall between the two living areas ● converting the existing Kitchen in your partners unit into a study ● closing the external access to your partners unit. Following a decision to sell your unit in late 20XX, work was undertaken to restore the two units to separate properties, in their original configurations. You sold your unit.

Relevant legislative provisions: Income Tax Assessment Act of 1997 section 118-115 | Income Tax Assessment Act of 1997 section 118-170