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Re: CGT Main Residence Exemption

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Hi there, so i have a question regarding to the new CGT Main residence exemption for expats:

 

From my understanding, a Non-resident for tax purpose from 2020 will not be able to claim Main residence exemption for their CGT anymore.

 

My question is: If i am an Australian Citizen who have a house that i bought in 2015, and i left Australia to work in Singapore from Jul2018 (therefore i am not an Australian resident for tax purpose) in FY 2020.

 

1. Will i still be able to claim the full CGT main residence exemption if i sold my property before 30 June 2020?
2. If i choose to keep it, and come back to become an Australian resident for tax purpose in 2022, If i sold the property during the time that i have become Australian resident for tax purpose, will i then still be able to access my full main residence exemption? or i will still have to pay CGT for my main residence?


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Hi @bryanmarch

 

Essentially if you sell while overseas as a non-resident of Australia (depending when you sign the contract) you can expect to be liable for CGT on the transaction. However if you sell after your residency status has changed, once you have returned to Australia, it will be covered by the main residence exemption providing you have met the eligibility criteria. See Treating your Main Residence as a dwelling after you move out. You will need to Work out your tax residency and if deemed a  Foreign resident then refer further down the link to Residency and tax categories

Also see Foreign residents and main residence exemption

 

I hope this helps.

MarkA

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Hi @bryanmarch

 

Essentially if you sell while overseas as a non-resident of Australia (depending when you sign the contract) you can expect to be liable for CGT on the transaction. However if you sell after your residency status has changed, once you have returned to Australia, it will be covered by the main residence exemption providing you have met the eligibility criteria. See Treating your Main Residence as a dwelling after you move out. You will need to Work out your tax residency and if deemed a  Foreign resident then refer further down the link to Residency and tax categories

Also see Foreign residents and main residence exemption

 

I hope this helps.

MarkA