The ATO has the following tips for taxpayers in relation to the CGT main residence exemption.
- They should consider if they have bought or disposed of property in the past income year. If they have sold property, were they using it solely as their primary place of residence, earning income from it (rental or business), or was it vacant land?
- They should understand the applicable record keeping requirements in relation to property.
- If they have disposed of vacant land, they are not eligible for the main residence exemption, even if they had intended to build their main residence on the land.
- They are only eligible for the ‘6-year absence rule’ if the property was their main residence before they rented it out.
- Broadly, they can only have one property as their main residence at a time – the only exception is the 6-month period when they move from one home to another.
Editor: If you need assistance with the above or with completing your tax return, please contact our office.
