Private ruling: Capital gains tax
Date of advice: 16 July 2025
Published: 8 September 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain or capital loss you make when you sell your vacant land? | A1: Yes. Under section 104-20 of the Income Tax Assessment Act 1997 (ITAA 1997) CGT event C1 will occur when you demolish the existing house on the property prior to selling. As you constructed the house before 20 September 1985, the capital gain or loss is disregarded. Under section 104-10 of theITAA 1997 CGT event A1 will occur when you sell the vacant land . As you acquired the land and constructed the house before 20 September 1985, you can disregard any capital gain or capital loss when you dispose of the vacant land.

Relevant facts and circumstances: You acquired a vacant block of land before 20 September 1985. You constructed a house on the land before 20 September 1985. You will demolish the house and sell the vacant land.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 104-20