In general if you own real estate and it is used as your main residence when you sell that property there is no tax or capital gain tax obligation. There are conditions and exceptions to this rule depending on your individual circumstances.
The main condition to satisfy full main residence tax exemptions as follows:
– Taxpayer is an individual.
– The dwelling was the taxpayer’s main residence throughout their ownership period;
– The dwelling was not used to produce assessable income;
– The dwelling did not pass to the taxpayer as a trustee or beneficiary in a deceased estate; and
– Any land on which the dwelling is situated is two hectares or less.
Note – the main residence exemption is not optional.
Author: Artur Osadchiy
Source: TaxBanter Effective Tax
Learning 21 December 2013