Clarification around current legislation
Brightline test (for properties sold within 5 years) – Clarification around the “Main Home” exclusion have been provided to state that the exclusion can only be used twice within a period. There has also been the introduction of a “Area and Use” test, which will become applicable for subdivisions of the family home. Transactions should not be caught in Brightline tests if more than 50% of the area of land has been used for the main home and more than 50% of the time of ownership the land was used as the main home.
There are many fishhooks within the brightline rules so talk to us if you are considering a property transaction where you think you may be caught. This will allow us the opportunity to consider and advise.