ATO's 'main residence exemption tips'

The main residence exemption needs to be considered in a variety of situations when a taxpayer sells a property they have lived in. The ATO hopes that the following tips will help in this regard:

• Taxpayers should consider if they have started earning income from their home (in which case they may need to get a market valuation for CGT purposes).
• When renting out a property that was their main residence, taxpayers need to consider whether to use the 6-year absence rule when they sell their property.
• Taxpayers can only have one property as their main residence at a time. The only exception is the 6-month period when they move from one home to another.
• Has the taxpayer's residency changed? If so, this may affect eligibility for the exemption.

Also discussed in this month's edition:

• Reminder of June 2024 Quarter Superannuation Guarantee ('SG')
• Notice of Medicare levy exemption data-matching program
• Family trust elections and interposed entity elections
• ATO may cancel inactive ABNs
• New lodgment obligation for income tax exempt organisations
• Taxpayers able to apply CGT small business concessions

Disclaimer: the above comments in this blog post are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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