Capital gains tax - discount

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.

Do you satisfy the conditions to use the general capital gains tax (CGT) discount in Division 115 of the Income Tax Assessment Act 1997 (ITAA 1997) in connection with the sale of your property?

Yes. You purchased the property after 21 September 1999. You owned the property for a period greater than twelve months when you disposed of your ownership interest. You have satisfied the requirements in Division 115 of the ITAA 1997 to reduce the capital gain you make by applying the individual discount method as detailed in section 115-100 of the ITAA 1997. Further information can be found on ato.gov.au and searching for QC 66019 This ruling applies for the following period: Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

On XX/XX/20XX, you entered a contract to jointly purchase a property (the property). You purchased the property as a residential property for your child to lease while completing university studies. You never lived at the property as your main residence. On XX/XX/20XX, more than twelve months after purchasing, you entered a contract to sell the property as your child moved away for employment purposes and no longer needed to reside there. On XX/XX/20XX settlement occurred.

Income Tax Assessment Act 1997 section 104-10 Income Tax Assessment Act 1997 Division 115 Income Tax Assessment Act 1997 subdivision 115-A Income Tax Assessment Act 1997 section 115-10 Income Tax Assessment Act 1997 section 115-15 Income Tax Assessment Act 1997 section 115-20 Income Tax Assessment Act 1997 section 115-25 Income Tax Assessment Act 1997 section 115-100