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.

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