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Haley_A_C(Initiate)Initiate
13 June 2023

Hi,

 

I have a client who moved overseas for work and rented out their primary residence. The client continuously rented out the property for a period greater than 6 years before moving back to Australia and selling the property. During this time the client did not claim another residence as their primary residence.

 

Is the client able to claim the 6 year primary residence exemption?

 

If the client is able to claim the 6 year primary residence exemption do they require a property valuation at the time the 6 year exemption expires to be used for the capital gain calculation?

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284 views
2 replies

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Most helpful replyATO Certified Response

Bruce4Tax(Taxicorn)Taxicorn
ATO Certified Response13 June 2023

Is the client able to claim the 6 year primary residence exemption?

 

Yes


If the client is able to claim the 6 year primary residence exemption do they require a property valuation at the time the 6 year exemption expires to be used for the capital gain calculation?


No - need valuation on date first rented.


https://www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/treating-former-home-as-main-residence/



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Most helpful replyATO Certified Response

Bruce4Tax(Taxicorn)Taxicorn
ATO Certified Response13 June 2023

Is the client able to claim the 6 year primary residence exemption?

 

Yes


If the client is able to claim the 6 year primary residence exemption do they require a property valuation at the time the 6 year exemption expires to be used for the capital gain calculation?


No - need valuation on date first rented.


https://www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/treating-former-home-as-main-residence/



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