{"id":3602,"date":"2023-06-12T14:07:00","date_gmt":"2023-06-12T04:07:00","guid":{"rendered":"https:\/\/aerogroup.com.au\/?p=3602"},"modified":"2023-06-12T14:08:33","modified_gmt":"2023-06-12T04:08:33","slug":"cgt-main-residence-exemption","status":"publish","type":"post","link":"https:\/\/aerogroup.com.au\/zh\/cgt-main-residence-exemption\/","title":{"rendered":"A Comprehensive Guide to Capital Gains Tax (CGT) on Properties- Understanding the Main Residence Exemption"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"3602\" class=\"elementor elementor-3602\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ddd5642 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ddd5642\" data-element_type=\"section\" data-settings=\"{&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-02d9a4c\" data-id=\"02d9a4c\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;,&quot;_ob_column_has_pseudo&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d589381 elementor-align-center ob-has-background-overlay elementor-widget elementor-widget-post-info\" data-id=\"d589381\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-992a0a1 elementor-inline-item\" itemprop=\"author\">\n\t\t\t\t\t\t<a href=\"https:\/\/aerogroup.com.au\/zh\/author\/aerogroup\/\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-author\">\n\t\t\t\t\t\t\t\t\t\taerogroup\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/li>\n\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-9e19858 elementor-inline-item\" itemprop=\"datePublished\">\n\t\t\t\t\t\t<a href=\"https:\/\/aerogroup.com.au\/zh\/2023\/06\/12\/\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-date\">\n\t\t\t\t\t\t\t\t\t\t6\u6708 12, 2023\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/li>\n\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-8989b71 elementor-inline-item\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-time\">\n\t\t\t\t\t\t\t\t\t\t2:07 \u4e0b\u5348\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e65435a ob-has-background-overlay elementor-widget elementor-widget-image\" data-id=\"e65435a\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_photomorph_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"800\" src=\"https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-1024x1024.png\" class=\"attachment-large size-large wp-image-3594\" alt=\"\" srcset=\"https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-1024x1024.png 1024w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-300x300.png 300w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-150x150.png 150w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-768x768.png 768w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips-12x12.png 12w, https:\/\/aerogroup.com.au\/wp-content\/uploads\/2023\/05\/Aero-Group-Tax-Tips.png 1080w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ac53f86 ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor\" data-id=\"ac53f86\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h1 style=\"text-align: center;\">A Comprehensive Guide to Capital Gains Tax (CGT) on Properties: <br \/><span style=\"color: #2c9199;\">Understanding the Main Residence Exemption<\/span><\/h1>\n<p>Typically, a primary residence is free from capital gains tax (CGT). The main residence exemption applies from the moment you acquire the property, on the condition that you move in as soon as practically possible.<\/p>\n<p>If you purchase your primary residence, the acquisition date is the settlement date of the contract. However, there are exceptions to this rule. If you experience unforeseen circumstances such as illness, your home remains exempt as long as you move in as soon as the issue is resolved.<\/p>\n<p>Additionally, if the property is rented to someone else, it cannot be considered your primary residence until you move in. If you have not sold your old home, you may treat both homes as your primary residence for up to six months.<\/p>\n<h3><strong><span style=\"color: #2c9199;\">Tax-Saving Tips When Moving Homes: Avoiding Capital Gains Tax on Your Primary Residence<\/span><\/strong><\/h3>\n<p>Moving into your primary residence is one way to avoid capital gains tax (CGT) on the property. However, to qualify for this exemption, you need to move in as soon as practically possible after acquiring the property for CGT purposes. If you bought the property, the settlement date of the contract is considered the acquisition date for CGT purposes.<\/p>\n<p>That said, there are some exceptions to this rule that you need to keep in mind:<br \/><br \/><\/p>\n<ul>\n<li><span style=\"color: #2c9199;\"><strong>Unforeseen circumstances:<\/strong><\/span> If you experience unforeseen circumstances or health issues that prevent you from moving in right away, you can still claim the exemption as long as you occupy the property once the issue is resolved.<\/li>\n<li><span style=\"color: #2c9199;\"><strong>Rental property:<\/strong><\/span> If you&#8217;re renting out the property to someone else, it cannot be considered your primary residence until you move in.<\/li>\n<li><span style=\"color: #2c9199;\"><strong>Two homes:<\/strong><\/span> If you haven&#8217;t sold your previous residence yet, you can treat both homes as your primary residence for up to six months. This can be useful if you need some time to move out of your old home and settle into the new one.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p>If you acquire a property and move into it as soon as practicable after settling the contract, you can consider it as your primary residence from the date of acquisition, even if you are sent overseas for work shortly after. During the period in which you treat a property as your primary residence, you cannot treat any other property as your primary residence, except for a limited period when you are moving house.<\/p>\n<h3><br \/><span style=\"color: #2c9199;\"><strong>Moving to a New Home as Your Primary Residence (6 Month Rule)<\/strong><\/span><\/h3>\n<p><br \/>If you&#8217;ve purchased a new home but haven&#8217;t yet disposed of your old one, you may be wondering how to avoid capital gains tax. The good news is that both homes can be considered your primary residence for up to six months, provided that you meet certain conditions.<\/p>\n<p><br \/>First, you must have lived in your old home as your main residence for at least three months out of the 12 months prior to its disposal.<\/p>\n<p>Additionally, you cannot have used it to generate income in the 12 months when it was not your primary residence.<\/p>\n<p><br \/>Once you&#8217;ve acquired your new home, it must become your primary residence to qualify for the exemption from capital gains tax. This means that you&#8217;ll need to move in as soon as possible and make it your primary residence.<\/p>\n<p><br \/>By following these guidelines, you can potentially save thousands of dollars in capital gains tax when you move to a new home. For more information and advice on how to manage your taxes when buying or selling a property, consider consulting with a professional accounting firm like Aero Accounting Group.<\/p>\n<p>Understanding the primary residence exemption is critical when it comes to Capital Gains Tax (CGT) on real estate. Moving into your principal residence as quickly as possible after purchasing it exempts it from CGT, albeit there are few exceptions. Some of these exceptions include unforeseeable situations, renting out the property, and owning two homes. If you are relocating to a new home, both can be deemed your primary residence for up to six months if certain circumstances are met. Following these principles could save you thousands of dollars in CGT.<\/p>\n<p>For even more expert advice on managing your taxes, consider consulting with a professional accounting firm like Aero Accounting Group.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bcde89d ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-heading\" data-id=\"bcde89d\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_harakiri_text_clip&quot;:&quot;none&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Need help?<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a4bee5 ob-harakiri-inherit ob-has-background-overlay elementor-widget elementor-widget-text-editor\" data-id=\"7a4bee5\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_use_harakiri&quot;:&quot;yes&quot;,&quot;_ob_harakiri_writing_mode&quot;:&quot;inherit&quot;,&quot;_ob_postman_use&quot;:&quot;no&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/aerogroup.com.au\/zh\/contact-2\/\">Contact us at Aero Accounting Group<\/a> today for a free Business Introductory appointment where we get to know a little bit more about you and your business, to prime you for 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data-settings=\"{&quot;eael_post_grid_columns&quot;:&quot;eael-col-4&quot;,&quot;eael_post_grid_columns_tablet&quot;:&quot;eael-col-2&quot;,&quot;eael_post_grid_columns_mobile&quot;:&quot;eael-col-1&quot;,&quot;_ob_widget_stalker_use&quot;:&quot;no&quot;,&quot;_ob_poopart_use&quot;:&quot;yes&quot;,&quot;_ob_shadough_use&quot;:&quot;no&quot;,&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"eael-post-grid.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div id=\"eael-post-grid-34661f6\" class=\"eael-post-grid-container\">\n            <div class=\"eael-post-grid eael-post-appender eael-post-appender-34661f6 eael-post-grid-style-default\" data-layout-mode=\"masonry\"><article class=\"eael-grid-post eael-post-grid-column\" data-id=\"8430\">\n        <div class=\"eael-grid-post-holder\">\n            <div class=\"eael-grid-post-holder-inner\"><div class=\"eael-entry-media\"><div class=\"eael-entry-overlay fade-in\"><i class=\"fas 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12w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\n            <\/div>\n        <\/div><div class=\"eael-entry-wrapper\"><header class=\"eael-entry-header\"><h2 class=\"eael-entry-title\"><a\n                        class=\"eael-grid-post-link\"\n                        href=\"https:\/\/aerogroup.com.au\/zh\/how-to-stay-compliant-with-rental-property-deduction-rules\/\"\n                        title=\"How to Stay Compliant With Rental Property Deduction Rules\">How to Stay Compliant With Rental Property Deduction Rules<\/a><\/h2><\/header><div class=\"eael-entry-content\">\n                        <div class=\"eael-grid-post-excerpt\"><a\n                            href=\"https:\/\/aerogroup.com.au\/zh\/how-to-stay-compliant-with-rental-property-deduction-rules\/\"\n                            class=\"eael-post-elements-readmore-btn\">Read More<\/a><\/div>\n                    <\/div><div class=\"eael-entry-footer\"><div class=\"eael-entry-meta\"><\/div><\/div><\/div><\/div>\n        <\/div>\n    <\/article><\/div>\n            <div class=\"clearfix\"><\/div>\n        <\/div>            <div class=\"eael-load-more-button-wrap eael-force-hide\">\n                <button class=\"eael-load-more-button\" id=\"eael-load-more-btn-34661f6\" data-widget-id=\"34661f6\" data-widget=\"34661f6\" data-page-id=\"3602\" data-template=\"{&quot;dir&quot;:&quot;lite&quot;,&quot;file_name&quot;:&quot;default.php&quot;,&quot;name&quot;:&quot;Post-Grid&quot;}\" data-class=\"Essential_Addons_Elementor\\Elements\\Post_Grid\" data-layout=\"masonry\" data-page=\"1\" data-args=\"orderby=date&amp;order=desc&amp;ignore_sticky_posts=1&amp;post_status=publish&amp;posts_per_page=4&amp;offset=0&amp;post_type=post\" data-max-page=\"41\">\n                    <span class=\"eael-btn-loader button__loader\"><\/span>\n                    <span class=\"eael_load_more_text\">Load More<\/span>\n                <\/button>\n            <\/div>\n            \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>A Comprehensive Guide to Capital Gains Tax (CGT) on Properties: Understanding the Main Residence Exemption Typically, a primary residence is free from capital gains tax (CGT). The main residence exemption applies from the moment you acquire the property, on the condition that you move in as soon as practically possible. If you purchase your primary [&hellip;]<\/p>","protected":false},"author":2,"featured_media":3594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,20,35,38,36,39,34],"tags":[46,50,47,75,76],"class_list":["post-3602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aero-group","category-blogs","category-business-owner-tax-return","category-for-business","category-free-second-look-assessment","category-news","category-property-investor-tax-return","tag-accountants","tag-accounting","tag-aerogroup","tag-cgt","tag-main-residence-exemption"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.9 (Yoast SEO v22.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Aero Tax tips: Understanding the Main Residence Exemption<\/title>\n<meta name=\"description\" content=\"Looking to reduce your Capital gains tax (CGT)? 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