What is the Temporary Absence Rule?
It is where a taxpayer already living in their principal
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place of residence moves out and rents the residence for a period of time.
The main residence exemption can be
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extended, by allowing the taxpayer to continue to treat the dwelling as if it were their main residence for all or part of the period that they are not living in it.
The taxpayer can move out of the main residence for a maximum period of six years. However, during this time, the taxpayer cannot treat any other dwelling as their main residence.
The Temporary Absence rule does not apply if you buy a residence and rent the dwelling out straight away without living in it.
During the 6 years that
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the main residence is rented out, if the owner decides to sell the property there will be no capital gains tax payable.
For further information, please contact us.
Submitted by: Eric Farrance- Rubiix Senior Manager
