Consider an owner lived in the property from day 1 since purchased, and moved out and rent it out ever since, and it passed the six year thing. I would assume the CGT exemption is up until the day it was rented out, instead of completely scrapped?
No Tax Tip 109: CGT and Being absent from the main residence for more than 6 years Tax Tip 109: CGT and Being absent from the main residence for more than 6 years
Hi Terry, That explains well. But seems like even ATO enquiry lines give different answer. One lady told me, no, once six year passed, you lost the complete CGT exemption. Then another lady told me, the exemption stayed until the year you started generating income from it..... *duhhh* Also what about if the owner became a non resident at the same as being rent out. Does it make a difference? Assuming it's sold before June 2019.
If you become a non-resident several matters may impact the main residence exemption 1. After 6 years the exemption ends (pro rate CGT may have applied to the period post ceasing to reside 2. If you become a non-resident after it commences to be rented then on the later of the date your residency changes or 6 years the general 50% CGT concession is lost; AND 3. New laws being bought back to the Senate TODAY (maybe tomorrow?) may retrospectively remove all the past main residence exemption in some cases. That right - As if you have NEVER resided there at all. You could lose the time you actually lived there and the 6 years as well and the 50% discount. We need to wait what occurs as the law has sat in review by Treasury for almost 5 months The matter is far more complex than most consider. Personal tax advice before considering a sale is important Foreign residents and main residence exemption
