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Stepped up cost base for your former main residence

Did you know you could obtain a stepped-up cost base for your former main residence?

Where you cease to occupy a house as your main residence and the house is then used for income producing purposes after 7:30 pm on 20 August 1996, you are deemed to have acquired the house at market value on the day it is first rented out.

You can even combine this rule with the 6 year absence rule, which allows you to continue to treat the former main residence to be your main residence for the 6 year period it was rented to tenants. This strategy will significantly reduce the potential tax impost on sale of your former main residence.

Obtaining a property valuation at each potential point may be of value to many taxpayers.

For more information, contact us on 02 9957 4033.

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