Does the 6-Year Exemption Rule apply to overseas property that was aquired before I moved to Austr.?

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 · Accepted Answer

JodieR_ATO · Answer

If you purchased a 2nd main residence after you arrived here you can only have one main residence (https://www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/) exemption from the date you signed the contract on the 2nd property. That means one of your properties will have a CGT liability when you sell or dispose of it. If you choose the NZ property to declare CGT, you can use the home first used to produce income (https://www.ato.gov.au/Individuals/Capital-gains-tax/Property-and-capital-gains-tax/Your-main-residence-(home)/Using-your-home-for-rental-or-business/#Valueofhomewhenfirstusedtoproduceincome) rule to calculate your cost base. You can also use partial exemption (https://www.ato.gov.au/Forms/Guide-to-capital-gains-tax-2021/?page=56), this takes into account the no' of days it was not your main residence over no' of days of ownership X your CGT. As you've owned the property 12mnths+ you can also apply the CGT discount.

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