My mother purchased a house in December 1985 and lived there for 3,255 days. In October 1994 my mother moved into the house of her partner which he purchased before he ever met my mother. She had no financial interest in his house and they were never married. My mother rented out her house from October 30, 1994 until May 12, 2006, a period of 4,212 days. Her partner died in May 2006 and she moved back into her own house shortly after his death. She was not left his house or any other assets in his will. She is now contemplating selling her own house. When calculating her capital gains tax liability is she entitled to claim the six year main residence exemption of 2,190 days? I have been told that a person is only entitled to claim the six year main residence exemption if they didn't have a another main residence, and that "another main residence" would include a spouse's residence. Would this apply if she never had any financial interest in her partner's house?
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"Would this apply if she never had any financial interest in her partner's house?"
Yes. See the information in this link. "Having a different home from your spouse"
Living separately to your spouse or children | Australian Taxation Office
In the link as a couple they can only have one main residence. As stated they can
"choose one of the homes as the main residence for both of you for the period" (when they owned both properties)
If no CGT event was declared when late partner's property was sold then by default the property would be deemed to be the main residence of both of them for the period they lived in it.
So the 6-year (continuing main residence) rule cannot be used.
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"Would this apply if she never had any financial interest in her partner's house?"
Yes. See the information in this link. "Having a different home from your spouse"
Living separately to your spouse or children | Australian Taxation Office
In the link as a couple they can only have one main residence. As stated they can
"choose one of the homes as the main residence for both of you for the period" (when they owned both properties)
If no CGT event was declared when late partner's property was sold then by default the property would be deemed to be the main residence of both of them for the period they lived in it.
So the 6-year (continuing main residence) rule cannot be used.
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