The primary residence exemption needs to be considered in a variety of situations when a taxpayer sells a property that they have lived in. Here are some points to consider :

  • Consider if you have started earning income from your family home. (You may need to obtain a valuation for CGT purposes).
  • When renting the primary residence, consider whether to use the 6-year absence rule when the property is sold.
  • Taxpayers can only have ONE property as their primary residence. The only exemption is the 6-month period whenthey move from one house to another.
  • Has the Taxpayer’s residence changed? If so, this may influence your eligibility for the exemption.

ALWAYS DISCUSS WITH YOUR ACCOUNTANT

 

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