EV 1052330953145currentnon-binding advice

CGT - main residence exemption

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Are you eligible for the main residence exemption on disposal of the property pursuant to section 118-195 of the Income tax Assessment Act 1997 (ITAA 1997)?

2

Yes. As the property remained the main residence of the deceased and was not used for income producing activities at the time of death, any capital gain or loss on the disposal of the property can be disregarded. This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: 1 XX 20XX

3

The deceased passed away on XX XX 20XX. At date of death, the deceased was the sole owner of a property. The deceased acquired the property before 20 September 1985. The property was the main residence of the deceased from the purchase date until the date of death. The property's land area is less than 2 hectares. Some improvement to the approximate value of $XX were completed on the property in 19XX. About a decade ago, the deceased had boarders living in the property with them for a short period. Food laundry and lodging were provided for a reimbursement of expenses. The property was transmitted into the name of the executor on or around XX XX 20XX. The property was sold at auction on XX XX 20XX. The sale was completed on XX XX 20XX.

4

Income Tax Assessment Act 1997 section 118-195