hello
1. principle place of residence for 2 years
2. investment property for 13 years
question is - if I move back into the property and it becomes my principle place of residence do I have to be there for a certain time before I sell to avoid capital gains tax ?thanks and kind regards
You will have to pay capital gains tax on the 13 years it was an investment property no matter when you sell it
You will have to pay capital gains tax on the 13 years it was an investment property no matter when you sell it
Thank you for your response. One final question. because the property was my initial principle place of residence before it was an investment property I am entitled to 50% discount off the CGT. Have I got that correct ?
That applies regardless of whether it was your principal place of residence as it was held for more than 12 months
thanks mate. Appreciate the speedy response
Cheers
if I moved back into the house made renovations added value to the home to get a higher sell price will that include capital gains tax. Or does the capital gains tax stop once the tenants have moved out and it is no longer an investment property anymore.
Hi @brettthur,
As you lived in the property and also rented it out, you can apply a partial exemption when you sell or dispose of the property. Completing renovations to retain the property's value can be included in the cost base.
Your capital gain or loss will be calculated using market value when you first used the property to produce income. This will factor into your cost base, thereafter sale price - cost base = TOTAL capital gain or loss. The 50% discount for 12mnths+ ownership can be applied to the TOTAL capital gain amount and reported at the NET capital gain label. This is also the label we use when applying marginal tax rates.
You can use the links below for further information.
Links-
Cost base.
Market Value.
Main residence.
Partial exemption.
Working out your capital gain or loss.
All the best.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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