Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
WILLIAMW(Enthusiast)Enthusiast
21 Oct 2022

Hi everyone,


I have this client who moved to another main residence exceeding the 6 months limit and would like to discuss how to calculate the CGT.


Timeline:


  • May 2011: purchased a land house package $320,000 (COS date)
  • 2012: construction completed and move in as PPR
  • March 2019: purchased property B, and moved in property B as PPR
  • 2019-2022: property A remain vacant and does not generate rental income.
  • March 2022: proper A is sold $550,000 (COS date).


Client is subject to partial main residence exemption for the period May 2011 to Mar 2019 + 6 months overlapping period (Sep 2019).


Client is subject to capital gain for the period Oct 2019 to March 2022.


My questions are:

  1. Can the client have 50% discount for the CGT on property A for the period Oct 2019 to March 2022.
  2. Property A was vacant whole period, can be holding cost such as bank loan interest, council rate, water rate be added to the COST BASE ?


Thanks very much


Kind regards


William




844 views
4 replies
844 views
4 replies

Most helpful response

Most helpful reply

JodieR_ATO(Community Support)Community Support
25 Oct 2022

Hi @WILLIAMW,


From the time your client purchased property B +6mnths, he'll be looked at for CGT - Sep 2019-Mar 2022. When applying the partial exemption this takes into account the no' of days it was not main residence over the no' of days of ownership x CGT. Expenses incurred for the property may be considered under elements of the cost base.


Your client can also apply the CGT discount as the property was owned 12mnths+.

All replies

Most helpful reply

JodieR_ATO(Community Support)Community Support
25 Oct 2022

Hi @WILLIAMW,


From the time your client purchased property B +6mnths, he'll be looked at for CGT - Sep 2019-Mar 2022. When applying the partial exemption this takes into account the no' of days it was not main residence over the no' of days of ownership x CGT. Expenses incurred for the property may be considered under elements of the cost base.


Your client can also apply the CGT discount as the property was owned 12mnths+.

Liked by WILLIAMW
WILLIAMW(Enthusiast)Enthusiast
27 Oct 2022

Hi Jodie,


Thanks very much for your reply on my queries.


From my understanding the loan interest, council rate, insurance and etc can be included in the cost base (third element: cost of owning the CGT asset).


Then my question is can we include the third element for the whole ownership period from May 2011 to March 2022. Or we can only use period Sep 2019 to Mar 2022 (period after moving out.)


Thanks


Kind regards


William

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)

    1280 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)

    2824contributions

  3. YellowPotato

    (Taxicorn)

    897contributions

  4. knaresbro

    (Devotee)

    295contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
CGT _ Mover to another main residence exceeding 6 months limit | ATO Community