Generally, you can ignore a capital gain or capital loss from a CGT event that happens to a dwelling that is your main residence (also referred to as 'your home').
To obtain full exemption from capital gains tax:
- the dwelling must have been your home for the whole period you owned it, and
- the dwelling must not have been used to produce assessable income, and
- any land on which the dwelling is situated must be two hectares or less.
If you are not fully exempt, you may be partially exempt if:
- the dwelling was your main residence during only part of the period you owned it, or
- you used the dwelling to produce assessable income, or
- the land on which the dwelling is situated is more than two hectares.
Short absences from your home, for example annual holidays, do not affect your exemption.
Note: New terms
There may be terms in this chapter that are not familiar to you. Refer to chapter 1 in part A for more information or to the Explanation of terms in this guide.