CGT cost base main residence

 Author: JodieR_ATO(Community Support)Community Support

16 June 2022

Hi @VANITAS42,

You can't use main residence 100% from the time you moved into your partner's. You also previously advised it was being used to produce assessable income. The rules around this mean, from the DATE you moved in with your partner you'll be looked at for CGT. You need to know market value of your property when you first started to use it to produce income (2020), and CGT will be liable from the date you moved in together.

So market value home first used to produce income (2020) is used for your cost base. Then you can apply a partial exemption to the amount you need to declare when you dispose of 50% of it to your partner. If you don't actually sell 50% to him, you'll need to know market value at the time of transfer. The other 50% ownership you can retain as main residence under 6yr absence rule, however, your partner will be liable for 50% CGT when he sells or disposes of one of the properties from when you first moved in together.

The partial exemption will take into account the no' of days it was not your main residence over the no' of days of ownership x your CGT (market value from date you moved in with your partner till market value, date of sale/transfer).

Use total figures to work it all out.... then halve it before reporting it to us.

You may want to speak with a tax agent to assist you with this.

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