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Re: The 6 year Absent from Main Residence Rule

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Initiate

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Hi,

If I rented out my main resident for some time (less than 6 years) and then decided to sell it, do I have to move back in  before the sale to be eligible for CGT exemption?

OR can I just sell it and still be eligible for full exemption?

 

Thanks

 

 

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Community Support

Replies 2

Hi @Suraweera,

 

If you originally lived in the property then moved out and retained it as your main residence and are an Australian resident for tax purposes, you can utilise the 6yr absence rule. If you own another property you can only claim main residence exemption on one property at any given time. 

 

If you do not exceed the 6yrs you can sell the property and not be liable for CGT. If it was rented out prior to you living in it as your main residence, you would be entitled to a partial exemption.  

 

Hope this helps.

3 REPLIES 3
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Most helpful response

Community Support

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Hi @Suraweera,

 

If you originally lived in the property then moved out and retained it as your main residence and are an Australian resident for tax purposes, you can utilise the 6yr absence rule. If you own another property you can only claim main residence exemption on one property at any given time. 

 

If you do not exceed the 6yrs you can sell the property and not be liable for CGT. If it was rented out prior to you living in it as your main residence, you would be entitled to a partial exemption.  

 

Hope this helps.

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Initiate

Replies 1

Thanks Jodie2. 

I just wanted to make sure whether the owner has to move back in before the sale (before 6yrs) to be eligible ?

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Community Support

Replies 0

Hi @Suraweera,

 

As advised, as long as they have lived in it previously and have not exceeded the 6yr absence rule this would be fine to sell without moving back in. You can use the links provided for further information.

 

Hope this helps.