1 Is any capital gain or capital loss you make due to the sale of the property disregarded in full?
No. Question 2 Is any capital gain or capital loss you make due to the sale of the property disregarded in part? Answer Yes. This private ruling applies for the following period Year ending 30 June 20xx Year ending 30 June 20xx Year ending 30 June 20xx The scheme commenced on: 1 July 20xx
You acquired in 20xx a dwelling. You moved into the dwelling as soon as practicable. You subsequently vacated the dwelling and the dwelling was tenanted. COVID-19 and the State Government restrictions later prevented you from reoccupying the dwelling. You were also prevented from removing existing tenants, notwithstanding that their existing lease had expired. You were also prevented from travelling to the dwelling due to Government restrictions. The existing tenants vacated the dwelling more than 6 years after it was first used to produce income. You moved into the dwelling very soon after the tenants vacated it. You moved out of the dwelling several months later. You will make an absence choice in relation to the dwelling. You will sell the dwelling during the period covered by this private binding ruling.
Income Tax Assessment Act 1997 Section 102-20 Income Tax Assessment Act 1997 Section 104-10 Income Tax Assessment Act 1997 Section 118-110 Income Tax Assessment Act 1997 Section 118-145 Income Tax Assessment Act 1997 Subsection 118-145(2) Detailed reasoning Main residence exemption Capital gains tax (CGT) is the tax you pay on any capital gain that you make. A capital gain or capital loss is made as a result of a CGT event occurring. The sale of a dwelling is CGT event A1. Generally, if you are an individual you can ignore a capital gain or capital loss from a CGT event that happens to your ownership interest in a dwelling that is your main residence. Main residence exemption absence rule Section 118-145 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that if you leave your dwel