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Re: Capital gains tax and main res exemption

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Hi!

 

My ex husband has agreed to pay me out for my share of the family home that we lived in together whilst we were  married. I moved out about two years ago, and have been renting since this time. 

 

We haven't got a consent order (as this is the only asset that we owned together, so didn't see the point), he's just refinanced the mortgage and is paying me out based on the current value of the property. As such, I don't believe that the breakdown of marriage rollover applies. 

 

My question is, since I have been renting since I left, is the property still considered my main res? Does this mean that the gain I'm making on the disposal of my share of the property is disregarded? Alternativley, does the 6 year rule in s118-145 apply?

 

I hope this makes sense!

 

 

 

 

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Hi @Kirsty3956

 

Yes, you can still be exempt from capital gains on the property provided you do not have another main residence.

 

A property will be your main residence for CGT where you own the property and live in it. If you do not own another property, you can continue to treat that family home you're being bought out from as your main residence, even if you stop living there. You can do this for up to six years if it is used to produce income, or indefinitely if not.

 

You can read about treating a dwelling as your main residence after you move out on our website.

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Most helpful response

ATO Certified Response

ATO Community Support

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Hi @Kirsty3956

 

Yes, you can still be exempt from capital gains on the property provided you do not have another main residence.

 

A property will be your main residence for CGT where you own the property and live in it. If you do not own another property, you can continue to treat that family home you're being bought out from as your main residence, even if you stop living there. You can do this for up to six years if it is used to produce income, or indefinitely if not.

 

You can read about treating a dwelling as your main residence after you move out on our website.