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532413770(Enthusiast)Enthusiast
7 Aug 2023

Hi,


I have a property at the moment as my primary residence. I have a question regarding the six-year rule of the capital gain tax.


In my understanding, if I rent my property out and meanwhile, I rent another place as my own residence. Then in this case, my property can still be considered as my primary residence for another six years. That is fair enough.


What if I rent my property out, and meanwhile I bought another investment property and live in the investment property. Does my previous property still apply to the six-year capital gain tax in this case?

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1,582 views
3 replies

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Most helpful reply

AriATO(Community Support)Community Support
9 Aug 2023

Hi @532413770


You can still apply the 6-year rule to your former main residence and purchase another property to live in.


When you sell the most recent property you won't be able to say it was your main residence for the period you said your former property was. So you can only treat one property as your main residence at a particular time.

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Most helpful reply

AriATO(Community Support)Community Support
9 Aug 2023

Hi @532413770


You can still apply the 6-year rule to your former main residence and purchase another property to live in.


When you sell the most recent property you won't be able to say it was your main residence for the period you said your former property was. So you can only treat one property as your main residence at a particular time.

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532413770(Enthusiast)Enthusiast
14 Aug 2023

Thanks a lot for your kind reply and explanation! I understand that 6-year rule now.


Please let me know if my understanding below is wrong.


I am planning to buy a second property. If I rent my first property out, and claim the interest, maintenance expense as deductions of rental income. In this case, does the 6-year capital gain tax discount still applies to this property? Or if I want to apply the 6-year rule CGT discount, then I'm not supposed to claim any deduction for the rental income?


It would be highly appreciated if you could advise this.


Thanks!

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Does six-year rule on capital gain tax applies to this situation? | ATO Community