Is any capital gain or loss you make due to the disposal of the Property disregarded?
No. This private ruling applies for the following period: Year ending XX June 20XX. The scheme commenced on: X July 20XX.
This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect, and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased passed away on XX April 20XX. Probate was granted to the Executors on X June 20XX. The following is stated in the deceased's will: AND FOURTHLY I direct my Trustee to purchase another residence or residences and to permit my child (X) and X's children to reside therein during the life of my child, on payment of rates, insurance, and the cost of keeping the residence in good repair. The Estate purchased the Property for X and their children to reside in, and the Executors names are listed on the title. The Property is situated on less than 2 hectares of land. X and their children began residing in the Property at purchase on or around X June 20XX. X passed away in February 20XX and since their death, their children have remained residing in the Property.
One the children now wishes to purchase their sibling's interest in the Property. The disposal to that child will be completed during the year ending XX June 20XX.
Income Tax Assessment Act section 102-20 Income Tax Assessment Act section 104-10 Income Tax Assessment Act section 118-110 Income Tax Assessment Act section 118-210 Detailed reasoning Section 102-20 of the Income Tax Assessment Act 1997 (ITAA 1997) states that a capital gain or capital loss is made only if a capital gains tax (CGT) event happens to a CGT asset. The dwelling is a CGT asset. Its sale is a CGT event under section 104-10 of the ITAA 1997. Main residence exemption - normal case Under section 118-110 of the ITAA 1997 you can disregard a capital gain or capital loss from a CGT event that happens to a CGT asset that is a dwelling or your ownership interest in it if all of the following conditions apply: • you are an individual • the property is less than two hecta