Best to see a tax agent or ask ATO technical assistance
Generally, MRE is applied to one eligible property on any given day. Exception is 6 month moving rule but does not apply to you since you have rented out the previous property. If there's overlap of eligible property, a choice will need to be made. Generally, the choice will need to be made when one eligible property has been disposed of and it would be locked in by what you declare in the tax return. Generally, spouses share one full MRE, if choose different properties, the effectiveness of the MRE may be reduced
- https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/living-separately-to-your-spouse-or-children
- https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/treating-former-home-as-main-residence
Am I eligible to apply for the CGT exemption on Property A, when it sells?
- To use the former main residence rule, it needs to have been your main residence, so you should be able to use it
- Yes, Property A is eligible for MRE. But remember for the overlap period between A and B, only one of the properties get the MRE, the other property is exposed to CGT for the period it doesn't have MRE
6 views
6 views1 replies
1 replies
6 views
1 replies