EV 1052414283668currentnon-binding advice

Capital gains tax

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

1 Can you disregard the capital gain or capital loss you make when you sell your vacant land?

2

1 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. This ruling applies for the following period: Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

3

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.

4

Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 section 104-20