Author: RichATO(Community Support)Community Support 21 Feb 2022
Hi @timcher
After you move out and the original home is demolished, unless you meet the requirements under building or renovating your home, you wont be able to use this as main residence exemption. There are circumstances where you can continue to treat the land as your main residence. However, you won't meet the eligibility criteria for this if you don't move into the dwelling as soon as practicable after it's finished. You also need to use it as your main residence for a period of at least 3 months.
From the time you rent it out, market value will need to be established and will form part of your cost base. Expenses incurred and the cost of the rebuild can be added to your cost base and used to calculate CGT once you sell or dispose of your property. A partial exemption will apply if you also use it as your main residence.
You can read more on our website about Building or renovating your home and value of home when first used to produce income.
Author: jefferybao(Initiate)Initiate 23 Nov 2023
Thank you for the reply.
Expenses incurred and the cost of the rebuild can be added to your cost base and used to calculate CGT once you sell or dispose of your property. --- Does it mean that I must keep all the original transaction record during all the rebuild procedure for the further CGT calculation? Or the rebuild cost will be assessed by the general market data at that time?
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