Capital Gains Tax on Main Residence



Vision Direct
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In Australia there is no Capital Gains Tax payable on the sale of your Main Residence.

July 2020:  Major Changes to these laws.

see: 2020-capital-gains-tax-on-main-residence

Page Amended January 2020

There is no Capital Gains Tax payable on the sale of your Main Residence, if you live in it.  There are some exemptions though. www.ato.gov.au/your-main-residence

Previous Rules (2009)


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The basic rule is that you have one “main residence”, and that is tax free, whilst it is your main residence, whether or not you live there. Complications to this may arise after 6 years of non residence at that property. This property does not have to be in Australia.

Sometimes complications arise when people have more than one property, or use a property to create income.

In these cases a bit of reading is required, and some of the following links may be of interest:  (links removed as no longer applicable)

  • As a general rule, a dwelling is no longer your main residence once you stop living in it. However, in some cases you can choose to have a dwelling treated as your main residence for capital gains tax (CGT) purposes even though you no longer live in it.
  • If you leave your main residence temporarily, you may want that residence to be treated as your main residence while you are away.
  • From 2008-09 new foreign income tax offset and foreign loss rules apply
  • Tips to help you be a tax-smart overseas property investor.
  • Special rules apply to the deductibility of expenses on overseas rental property.
  • Explains how to treat foreign income from passive investments such as securities and rental properties, as well as interest and royalties.
  • Investing in overseas property

Notes:

If the gain is taxable in Australia and you have paid foreign tax on it, you may be entitled to a foreign income tax offset.


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