Tax Tip 223: When can the Main Residence CGT Exemption be claimed?

Discussion in 'Accounting & Tax' started by Terry_w, 29th Jul, 2019.

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  1. Terry_w

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

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    To claim a property as your main residence and for it to be exempt from CGT the follow circumstances must be satisfied for the full exemption to apply

    a) The ownership interest must be held by an individual, not acting as trustee, and

    b) There must be a dwelling on the land when it is sold, and

    c) The property must have been the main residence for the whole of the ownership period, and

    d) The taxpayer or their spouse, must not have claimed any other property as the main residence during the ownership period. and

    e) The land must be less than 2 hectares in size, and

    f) The property must not have been used to produce assessable income while it was being lived in, or you were not able to claim the interest on the loan while living there.

    If one or more of the above conditions are not met then the main residence exemption is either not available or it may only be available in part.

    Note that for c) a property may still be classed as the main residence after moving out by using the 6 year rule.
     
    Terry_w, 29th Jul, 2019
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