Property Tax Specialists Melbourne | Main Residence – Absence Rule
Property Tax Solutions a firm of Property Tax Specialists Melbourne sometimes get asked about the main residence absence provisions (sometimes known as the six (6) year rule and how it applies to a property that was your principal of residence BUT part of the property was used as a place of business.
You might be a trades-person who has a dedicated room and storage for your work tools and from which you do quotes, invoices, job management and general bookkeeping. Its a dedicated space for the business. Or you are a chiropractor and the front garage has been setup specially to see clients and has your business at the front of the house.
Well there is a trap for those who use their main residence and part of the property is used as a place of business.
Under S.118-190 you cannot apply to the business portion of the property, the temporary absence rule
this will mean that the percentage of business usage will continue to be ineligible for the up to the entire 6 year period.
a trap for the unwary.
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If you want to know more about the main residence (PPOR) and main residence absence rule (sometimes referred to as the six (6) year rule you can read our previous article on that topic here Main Residence and 6 Year Absence Rule