Hi, I bought a property in 2014 while I was away as non-tax resident. Moved back in 2015 and lived in the property from July 2022 till it was sold on 30 July 2024.
1) Am I qualified for the 50% CGT discount having owned the property for more than 12 months and sold it while I was a tax resident?
2) How do I calculate the CGT? Can I use valuation method i.e. value it when I moved in for CGT gain calculation?
Appreciate your guidance. TQ.
CGT discount guidelines in link
CGT discount | Australian Taxation Office
Both to apply for discount
Partial exemption calculation for CGT is below. Valuation of property when you move back in is not used in any CGT calculation. It is sale price (or market value on disposal)
Partial exemption | Australian Taxation Office
See cost base elements
Cost base of assets | Australian Taxation Office
Both to apply for discount
Please confirm point 2 in bold is the residency status at the point of sales as I have understood. TQ.
From the link I provided in first reply.
"When you sell or otherwise dispose of an asset, you can reduce your capital gain by 50%, if both of the following apply:
And check the exclusions. None of those apply as per facts presented.
One more point. Cost base (element 1) for property will be market value of property as at date you became a tax resident. See that rule below
How changing residency affects CGT | Australian Taxation Office
I need to make a correction on my second reply. Cost base for any CGT event will be purchase price, not market value when you became a resident.
As this is taxable Australian property, normal CGT rules apply.
So disregard my last paragraph in the second reply.
Whether or not you can use the main residence exemption will depend on your tax residency at time of sale. Australian tax resident have it; Foreign tax resident don't have it
Based on the information in the link provided (extracted below), the apportioned discount only applies for foreign resident at time of sale:
If the asset was purchased after 8 May 2012, and you were a foreign or temporary resident for the entirety of your ownership period, you aren't entitled to any CGT discount when you sell the asset.
You can claim an apportioned discount for the period you were an Australian resident if you purchased taxable Australian property after 8 May 2012 and you were both:
Though I was away when I purchased the property, I have been an Australian resident prior to and at time of sale. Therefore, the apportioned discount does not apply to me. Please confirm. TQ.
Here's a summary
But you said "I bought a property in 2014 while I was away as non-tax resident." = you purchased the property while foreign tax resident?!
Also is the property Australian real estate?
"Based on the information in the link provided (extracted below), the apportioned discount only applies for foreign resident at time of sale:"
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