Overseas Property - Main Residence Exemption

Discussion in 'Accounting & Tax' started by Mike A, 9th May, 2019.

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  1. Mike A

    Mike A Well-Known Member

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    An overseas property can potentially be eligible for the main residence absence provisions.

    However many times it won't be.

    Do you know why ?
     
    Mike A, 9th May, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes and it turn out unfair in some cases. Timing is everything.
     
    Terry_w, 9th May, 2019
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    Mike A likes this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A few months back I completed a complex return for a UK national who lives here who didnt realise his former home in the UK was eligible as a former main residence, the value at date of tax residency resets the costbase and the 6 year absence exemption. Then was stunned to realised that under new buy to let tax rules in the UK the non-deductible interest is a 3rd element CGT cost. Throw in exchange rate issues and it was far better than estimated.
     
    Paul@PAS, 9th May, 2019
    #3
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