Main residence exemption

Question

I have built a spec home but could not sell it, I am now living in it. How long do I have to live there to cover it with my main residence exemption?

Answer

You are not entitled to use your main residence exemption to cover this property because the profit on it is caught as normal income not a capital gain. The main residence exemption is only available when CGT applies and if a profit is caught as normal income then this takes priority over CGT. References for your Accountant TD92/135.

. .
Have a question about tax you need answered?

. Ask your own tax question here for only $79.95