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TysonS(Newbie)Newbie
7 Apr 2021

Hello,

I have a question about capital gains tax and the 6 year rule.

I am just unsure if the rule will apply to me or not as I cannot find a definite answer.

- I purchased a property in 2012

- Rented it out for 6 months to the existing tenant at time of sale

- Lived in from mid 2013 to mid 2019

- Rented from mid 2019 to current

- Intend to sell around July 2021

My question is - can I use the 6 year rule as I didnt use the property as my main residence from day 1?

Thanks

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948 views
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BlakeATO(Community Support)Community Support
8 Apr 2021

Hi @TysonS,

You can only use the main residence absence rule after you move out of a property. Our website advises: You can't make this choice [to treat the property as your main residence while absent] for a period before a dwelling first becomes your main residence.

This means for the period of settlement until the time you moved in in mid-2013, the property will be liable for capital gains.

You may be able to use the main residence absence rule of up to six years for the time after you moved out. For you, this will be mid-2019 to mid-2025.

You can read about treating a dwelling as your main residence after you move out on our website.

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Most helpful reply

BlakeATO(Community Support)Community Support
8 Apr 2021

Hi @TysonS,

You can only use the main residence absence rule after you move out of a property. Our website advises: You can't make this choice [to treat the property as your main residence while absent] for a period before a dwelling first becomes your main residence.

This means for the period of settlement until the time you moved in in mid-2013, the property will be liable for capital gains.

You may be able to use the main residence absence rule of up to six years for the time after you moved out. For you, this will be mid-2019 to mid-2025.

You can read about treating a dwelling as your main residence after you move out on our website.

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