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Life Tenancy

Newbie

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Replies 2

I own two house properties both of which are rented out and I live in another in which I have a life tenancy. I am not the owner.

 

I plan to sell one of my properties which I have always considered to be my home, although I have lived for years in a separate property.

 

I would like to claim the 6 year excemption for CGT on the property to be sold.

 

Would the home I live with a life tenancy be considered my principal place of residence and therefore make me ineligible for the exception.

 

I would like some clarification of the rules.

 

Cheers

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

** Edited by Moderator to reflect correct information **

 

Hi @Bowral,

 

Fortunately, you are not looked at for capital gains tax (CGT) on properties you do not physically own. The one you are renting/leasing does not get considered for CGT.

 

In order to claim main residence exemption and the 6yr absence rule, you need to of lived in the property and had it as your main residence. You can view what this entails via the link below.

 

If you previously lived in the property you are selling as your main residence, the 6 year exemption will be from the time you first used it to produce assessable income. If it exceeds the 6yrs you can only claim the exemption for up to 6 year. Any time period over and above this will be looked at for CGT.

 

If this is the case, you will be entitled to a partial exemption. If you have never lived in the investment properties you are tenanting, then you cannot claim the main residence exemption or the 6 year absence rule.

 

Links -

 

Treating your dwelling as a main residence after you move out.

Main residence.

Partial exemption.

Working out your capital gain or loss.

 

All the best.

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 0

** Edited by Moderator to reflect correct information **

 

Hi @Bowral,

 

Fortunately, you are not looked at for capital gains tax (CGT) on properties you do not physically own. The one you are renting/leasing does not get considered for CGT.

 

In order to claim main residence exemption and the 6yr absence rule, you need to of lived in the property and had it as your main residence. You can view what this entails via the link below.

 

If you previously lived in the property you are selling as your main residence, the 6 year exemption will be from the time you first used it to produce assessable income. If it exceeds the 6yrs you can only claim the exemption for up to 6 year. Any time period over and above this will be looked at for CGT.

 

If this is the case, you will be entitled to a partial exemption. If you have never lived in the investment properties you are tenanting, then you cannot claim the main residence exemption or the 6 year absence rule.

 

Links -

 

Treating your dwelling as a main residence after you move out.

Main residence.

Partial exemption.

Working out your capital gain or loss.

 

All the best.

Former Community Support

Replies 0

Hi @Bowral,

 

We have updated our original response to reflect correct information.