Generally when you build a new home, or buy an existing home which you intent to repair or renovate before moving in.
The ATO will allow the home to be deemed your principal home for CGT purposes (no capital gains tax) provided you move in within 4 years from the time of the original purchase.
So if you buy a block of land and then build a home to live in, you have up to 4 years to complete the construction and exercise the right to call it your principal home and avoid any CGT if and when you sell, under S.118-150 of the ITAA 1997.
However to exercise the right to deem the home to be your principal home of residence you need to meet the following conditions
Please contact our office if you would like to review your personal situation to ensure your home is not subject to any Capital Gains Tax (CGT) when sold and if audited by the ATO.
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