I have a question about the third element of the cost base for a property that has a partial main residence exemption. If someone bought a vacant block of land in 2020, built a house on it in 2023, and then moved in. They sold the property in 2026. They had another main residence for the period 2020 to 2023, so they can't claim a full main residence exemption.
My question is about the holding costs, such as interest, rates and insurance. Are these costs able to be added in for the whole ownership period? Would the gain be calculated as the sale price less cost (including holding costs for the ownership period), and then the net gain is apportioned based on non-main residence days?
Are the holding costs for the entire ownership period included, or only for the period when it was vacant land?
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