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WS(Newbie)Newbie
17 June 2021

With the move into a Retirement Village a bond is paid and will be refunded when leaving with no capital growth. Client owns a home that has personal furniture with utilities connected, This home was initially built as a private holiday house and has never been rented and used only by the client for personal reasons.

With the move into the Retirement Village can my client class the home as being the princiapl place of residence rather than the Unit in the Retirement Village.?

On sale of the home CGT will be payable on a portion of the gain calculated on the period before moving into the Retirement Village. They may alsoon the sale of the home access the super downsize contribution.

Do others agree ?

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1,159 views
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_KaraBATO(Community Support)Community Support
18 June 2021

Hello @WS,

A property is only entitled to a main residence exemption once you move in and establish it as a main residence.

In this Scenario the client:

    • didn't establish the holiday house as their main residence
    • is not moving in to the holiday house to establish it as their main residence.

    This means the client is not be able to claim a main residence exemption for their holiday house.

    For more information please see the Your main residence section of our guide to capital gains tax.

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    Most helpful reply

    _KaraBATO(Community Support)Community Support
    18 June 2021

    Hello @WS,

    A property is only entitled to a main residence exemption once you move in and establish it as a main residence.

    In this Scenario the client:

      • didn't establish the holiday house as their main residence
      • is not moving in to the holiday house to establish it as their main residence.

      This means the client is not be able to claim a main residence exemption for their holiday house.

      For more information please see the Your main residence section of our guide to capital gains tax.

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