Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
thind_21(Newbie)Newbie
11 Oct 2021

If someone was living in his/her ppor for past 4 years and has an investment property as well for past two years which was rented. Now the ppor has been sold and he/she is moving in the investment property (which will be their ppor from now). How the CGT on the property will be treated keeping in mind that the person sells the property in next 2 years? What will be the cost base for selling the investment property (ppor now)? is the actual cost when they acquired the property or the valuation of the property on the date it became ppor?

446 views
1 replies
446 views
1 replies

Most helpful response

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response12 Oct 2021

Hi @thind_21, As the 2nd property was immediately used as an investment property, the purchase price will be used when calculating the cost base for CGT. If the person has now made it their main residence, a partial exemption will apply when they eventually sell or dispose of the property. This takes into account the no' of days it was not their main residence, over the no' of days they owned the property. Partial exemption = Total capital gain x (non-main residence days/total ownership days). Calculating your CGT - https://www.ato.gov.au/individuals/capital-gains-tax/calculating-your-cgt/

All replies

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response12 Oct 2021

Hi @thind_21, As the 2nd property was immediately used as an investment property, the purchase price will be used when calculating the cost base for CGT. If the person has now made it their main residence, a partial exemption will apply when they eventually sell or dispose of the property. This takes into account the no' of days it was not their main residence, over the no' of days they owned the property. Partial exemption = Total capital gain x (non-main residence days/total ownership days). Calculating your CGT - https://www.ato.gov.au/individuals/capital-gains-tax/calculating-your-cgt/

Featured articles

Renting out all or part of your home? What to include in your tax return

15 Apr 2026 · 4 min read time

How to work out your tax residency

15 Apr 2026 · 8 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    1288 likes

  2. Bruce4Tax

    (Taxicorn)

    1117 likes

  3. YellowPotato

    (Taxicorn)

    340 likes

  4. Ken_Oath

    (Master)

    199 likes

  5. knaresbro

    (Devotee)

    141 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    3397contributions

  2. Taxduck

    (Taxicorn)

    2828contributions

  3. YellowPotato

    (Taxicorn)

    903contributions

  4. knaresbro

    (Devotee)

    295contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
How below will be treated for CGT | ATO Community