• What is an ownership interest?

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    You have an ownership interest in a dwelling or land if:

    • In the case of a dwelling that is not a flat or home unit, you have:
      • a legal or equitable interest in the land on which it is erected or
      • a licence or right to occupy it.
       
    • In the case of a flat or home unit, you have:
      • a legal or equitable interest in a strata title in the flat or home unit or
      • a licence or right to occupy the flat or home unit or
      • a share in a company that owns a legal or equitable interest in the land on which the flat or home unit is erected and that share gives you a right to occupy the flat or home unit.
       
    • In the case of land, you have:
      • a legal or equitable interest in it or
      • a right to occupy it.
       

    For the purposes of the main residence exemption, you have an ownership interest in a dwelling or land you acquire under a contract from the time you obtain legal ownership, unless you have a right to occupy it at an earlier time.

    You have legal ownership of a dwelling or land from the date of settlement of the contract of purchase until the date of settlement of the contract of sale. If the home is your main residence for the whole period between settlement of the contracts for purchase and sale - and you do not use it to produce assessable income - the home is fully exempt from capital gains tax.

    In calculating a capital gain or loss from a CGT event that happens to your home, for the main residence exemption the date of acquisition is usually different from the start of your ownership period. You are considered to have acquired the asset on the day you made the contract to acquire it rather than at the date of settlement. This is usually the day that you exchanged or otherwise executed the contract. You calculate a capital gain or loss from the date of acquisition.

    Last modified: 18 Sep 2009QC 18323