Another CGT application rule - move back in

What constitutes moving back in for the purposes of resetting the 6 year clock for cgt exemption? Is this prescribed by legislation or have there been tax rulings in the past about this?

Also do I even need to move back in before selling or can I just go ahead and sell if within 6 years of previous move-out?

 

No need to move back in to qualify for the 6 year rule.
If you do move in them you must establish it as the main residence again for the 6 years to start again on the next move out.

 

Thanks Terry

So how does one establish main residence lol - has there been a test case about this or does one simply get a few bills in his own name sent to that address and it's done and dusted?

 

You move into the property and live there.

There has been a few cases about the first home owners grant - people saying they live in a property when no water was consumed.

The best defence is the truth.

 

Enrol to vote, connect interwebs etc.

 

I thought it was evidenced by having a photo of your kids on the mantle piece (or mother-in-law's photo behind the dunny door).

 

Connect and run up all utilities, got it.

 

And live in it as your home.

 

I even got those lightbulbs that can be turned on/off over the internet. Finally a valid use case! E27 Bulb Original Xiaomi Smart LED Bulb -15.30 and Free Shipping| GearBest.com

 

Its called the main residence exemption so.it needs to be your residence and you must fully reside there. No tricks to the issue but if you are seeking a trick it is worth advice. Many issues can impact.. like having a partner or not moving back

 

You fully move in. If you own other properties, ensure they are all fully rented out under leases. Don't maintain another leased property in your name. Same if you have a partner.

Just remember that if audited and it all hits the fan, it will be up to YOU to prove that it was your PPOR.
Marg

 

Is there a time limit on HOW long you must live there when moving back in to reset the 6 years?

Example: I am moving overseas in 2 months and the property has now become vacant having been renting out 5.5. If I move in for only those 2 months is that enough time for it to reset the 6 years (it is still currently my PPOR as we lived in it for 8 months after purchasing in Oct 2011 then moved out as we rent elsewhere)

 

Possibly. Depends - For example if your family live elsewhere it may fail. Or if you dont fully move in.

 

There is no time limit, but it has to be established as the MAIN residence. Merely moving in is not enough.

 

In my situation, my family has moved overseas to UK (wife from there) and I've stayed here to finish a work contract for 3 months. I don't have any other property and this one has now become vacant so I was planning to move into it for the remaining 2.5 months till I depart.
It's the only residence I own.

 

It doesn't sound like it would be your main residence to me

 

Interesting... So even in my own country, living in my own home, it's still not classed as my main residence.

Is my sisters spare room my main residence? Is the rental property I just moved out of my main residence? or... do I simply become a 'refugee' type of person with no real main residence?

I tell you what, when experiencing how the ATO and the government treat average mum and dads it makes me wonder what the point of even having a go is.

 

The main residence is you 'main' 'residence'. It seems this will be just temporary accommodation with your intention already to move overseas and your family being there.

You should seek specific tax advice.

 

Thanks Terry,

Anyone know a tax specialist in this area who you may be able to recommend?

Cheers

 

Nope.