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Moh10(Initiate)Initiate
12 Apr 2026

I want to buy a house and live in it for 10 months. The house is very big and has few rooms. I might want to rent out one or two rooms. After 10 months I want to move out and rent the whole house (I want to use 6 year absent rule form then). Can you tell me if I sell the property after 9 or 10 years how ATO calculates the CGT? I want to treat the home as a main residence.

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1 replies
63 views
1 replies

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Taxduck(Taxicorn)Taxicorn
13 Apr 2026

If you know little about CGT then you will probably get lost in the maze of rules and guidelines.

Some information below

Treating former home as main residence | Australian Taxation Office

See hyperlink "Former home used for income before you move out"

From the guidelines, you can't claim the 6 year rule on that portion of the home you are renting out before you moved out.

The cost base for any gain/loss calculation when renting out your home is the market value of your home when first rented. Guidelines below.

Using your home for rental or business | Australian Taxation Office

The calculation for CGT is below

Partial exemption | Australian Taxation Office

When renting part of your home then the gain/loss is apportioned for the area rented (and days rented).

Renting out part of a home | Australian Taxation Office


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How is capital gains tax calculated if I live in a home briefly, rent rooms, then use the 6‑year absence rule? | ATO Community