1 Did capital gains tax (CGT) disposal event A1 happen to you on the sale of property 1?
1 No. Question 2 Can you claim the capital gains tax (CGT) main residence exemption on the sale of property 1? Answer 2 No. Question 3 Did CGT disposal event A1 happen to you on the sale of property 2? Answer 3 No. Question 4 Can you claim the CGT main residence exemption on the sale of property 2? Answer 4 No . This ruling applies for the following periods : Period ended 30 June 20XX Period ended 30 June 20XX Period ended 30 June 20XX Period ended 30 June 20XX The scheme commenced on: 1 July 20XX
Trust 1 The Trustee for the Trust 1 purchased a property at XXX on XXX and settlement was completed on XXX. You are the Trustee of Trust 1. You lived in the XXX property for a period of time. On XXX the XXX property was made available for rent. On XXX, a contract for sale was entered into by the Trustee for the sale of the XXX property and settlement occurred on XXX. The Trust deed specifies that the primary beneficiary is XXX and the secondary beneficiaries are the spouse and child of the primary beneficiary. The Trust deed states that the capital of the trust is held on trust for any one or more of the beneficiaries in proportions that the trustee at its discretion decides. Trust 2 The Trustee for Trust 2 purchased a property at XXX on XXX and settlement was completed on XXX. XXX is the Trustee of Trust 2. You lived at the XXX property commencing on XXX. On XXX, a contract for sale was entered into by the Trustee for the sale of the XXX property and settlement occurred on XXX. The Trust deed states that the General beneficiaries include the Specified beneficiary and the spouse, parents, siblings, children or grandchildren of the Specified beneficiary.
The Trust deed states that the Specified beneficiary is XXX and the additional general beneficiary is XXX. The Trust deed states that capital of the trust is held on trust for any one or more of the beneficiaries at the discretion of the trustee. You have a partner and a child.
Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 106-50 Income Tax Assessment Act 1997 subsection 118-110(1) Income Tax Assessment Act 1997 subsection 960-100(2) Income Tax Assessment Act 1997 subsection 960-100(3) Income Tax Assessment Act 1997 subsection 960-100(4) Summary A property is considered to be owned by the person(s)/entity registered on the title. A trust cannot apply the main residence exemption as the entity making the capital gain must be an individual. You did not own the properties and during the period the trusts legally owned the properties, you were not absolutely entitled to them because the respective trust deeds did not give you a vested and indefeasible interest in the entire trust assets. Detailed reasoning A capital gain or capi