Facts
Your client owns a house where they live and a holiday house.
They propose to sell the holiday house.
Question
Can your client choose to apply the CGT main residence exemption to the holiday house?
Answer
No.
Tax Tips
Section 118-110(1)(b) ITAA 1997 requires the dwelling is a main residence. The key word being main. The ordinary meaning of the word main is ‘chief, principal’.
The house that your client occupies as a home is their chief/principal residence, their main residence. The holiday house is not the main residence.
The holiday house cannot be a main residence if your client is living elsewhere, being in the home.
If you would like to receive up to date tax tips directly to your email, subscribe below.
Commentaires