I'm receiving a number of enquiries each week that revolve around a common theme. A feature of the rise in value for OTP build in Sydney together with a number of these projects coming to completion. Here is issue in a nutshell....Person sign a OTP contract and pays a deposit say in 2013. Only now is the property nearing completion. Plan is to move in as soon as completed. Live there 3, 6 months or so and in that time list it for sale. Property is eligible as taxpayers main residence so the CGT on the sale will be zero. Right ? Problem is that is just not correct. I have to explain that CGT is based on "CGT events" defined by law rather than a purchase and sale in the commercial sense. The creation of the CGT asset occurs when the contract to acquire is created. The CGT event relating to disposal also is based on when the contract is made for disposal. Settlement dates are not relevant. So in its simplest form a main residence exemption can only commence when the property commences to be the taxpayers main residence. The period ownership of the CGT asset (a right to acquire) exists well before that date. So an apportionment of the final "profit" must be made and the period after occupancy until sale may well be exempt.