If you thought the rules regarding the main residence exemption were complicated (and they are), determining whether a main residence exemption is available for a CGT event which happens to a dwelling acquired from a deceased estate is at another level entirely. Whether the exemption is available, in whole or in part, can depend on whether the dwelling was pre or post-CGT in the deceased’s hands, whether the deceased used it as their main residence just before they died (or were they renting it), how much time passes between death and sale by the LPR or beneficiary, how the dwelling is used after death by the LPR or beneficiary and much more.
This session will consider, with the use of examples and illustrations:
- the significance of the two year rule, and how to (potentially) get it extended
- working out the amount of exemption available where more than two years has passed
- whether, and to what extent, an exemption might be available for a dwelling that was not the deceased’s main residence when they died
- the circumstances in which the main residence exemption might be available to more than one dwelling of the deceased’s
- the impact of using the dwelling(s) to produce assessable income, before and/or after the deceased’s death
- how to determine the cost base, the ownership period and the number of non-residence days for the purposes of working out the amount of a partial exemption in circumstances where a full exemption is not available.
