10 May 2019
Estates - Main residence CGT exemption after one year absence
I am acting for an estate where the executor has just sold what used to be the deceased’s main residence within one year of the deceased's death. I understand that the sale of the main residence will be CGT free if sold within 2 years from death.
However, the deceased moved out of the home and into residential aged care about a year before their death. Can the estate utilise the CGT exemption in this scenario?
Thank you for the question.
A dwelling can continue to be treated as a main residence for CGT purposes, although the individual no longer lives there, under the absences rule – see sections 118-145 of the Income Tax Assessment Act 1997 (Cth).
Under this rule, an individual:
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