Main residence absence provisions and still pay tax

Did you know you could have thought you elected for a property to continue to be your main residence after you moved out and it would still be taxed. How ?

Billie sees rodney who really isnt up to speed but hes cheap 150 aud for a return. Billie tells rodney he moved out of his ppor and rented it for 4 years. He is worried he will pay CGT.

No worries mate CGT exempt they have a six year rule for that. Lets ignore it. Ok next.

Now rodney forgot the provision where the ATO considers that such an election is sufficient in how you prepare your tax return. At the capital gains section rodney should have included it and indicated that the main residence exemption applied. Oops rodney didnt even know.

Poor billie is now spending thousands with a competent tax lawyer to argue otherwise. The tax lawyer tells billie it all could have been avoided. Rodney is wondering whether his Pi insurance will cover him.

 

Key issue is a main residence exemption CANNOT be used by a property owner without considering their de facto., same sex or otherwise partner.... only one exemption within a relationship