Hi, investment property for 1.5 years. Now converting to main residence. Plan to live there for many years.
How do I calculate capital gains down the track? Is it:
Cost base = Purchase Price
Sale price = Market value when converting?
Surely any gain in value while main residence is not subject to CGT. Is my sale price above correct?
If it was never a main residence before being rented, then there will always be CGT issue on sale.
Sale price = sale price when eventually sold in future.
Main residence exemption = pro-rata by days of main residence v total days of ownership. Holding costs during main residence period can reduce capital gain subject to pro-rata exemption.
If:
you cannot move in because the property is being rented to someone – the property does not become your main residence until you move in
From:
If it was never a main residence before being rented, then there will always be CGT issue on sale.
Sale price = sale price when eventually sold in future.
Main residence exemption = pro-rata by days of main residence v total days of ownership. Holding costs during main residence period can reduce capital gain subject to pro-rata exemption.
If:
you cannot move in because the property is being rented to someone – the property does not become your main residence until you move in
From:
oops sorry it looks like we got it wrong so we have removed @RichATO's response.
Thanks @Bruce4tax for joining in with great info to assist @atoquestions2. We appreciate your help.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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