15 Aug ATO’s ‘main residence exemption tips’

The main residence exemption needs to be considered in a variety of situations when a taxpayer sells a property they have lived in.  The ATO hopes that the following tips will help in this regard:

•    Taxpayers should consider if they have started earning income from their home (in which case they may need to get a market valuation for CGT purposes).
• When renting out a property that was their main residence, taxpayers need to consider whether to use the 6-year absence rule when they sell their property. 
• Taxpayers 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.
• Has the taxpayer’s residency changed?  If so, this may affect eligibility for the exemption.