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ccss(Newbie)Newbie
30 May 2026

I sold two properties this year, not sure how to calculate CGT for the second one.


Property 1(1BR) was bought by my husband and I in 2015 at preselling, it was completed in May 2017. Moved in straight away and lived there until March 2020.


Property 2(2BR) was bought in March 2020, moved in after settlement on May 2020.


Property 1 was put up for rent in May 2020 but wasn't rented out until July 2020.


Property 2 had huge repairs and we decided to sell. Sold in early Jan 2026, settled end of Feb 2026.


Property 1 tenant was notified in December 2025 that we will be moving back in, she vacated mid Jan 2026. We moved in end of Jan 2026, after less than 2 months decided to sell it because space is not enough for us. Sold it mid April 2026 and settling first week of June 2026.


Property 2 is exempt from CGT because it was our main residence. But what about Property 1, we moved back end of Jan 2026 and moved out May 2026(4 months), is it exempt, 50% discount on CGT or something else?


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Taxduck(Taxicorn)Taxicorn
30 May 2026

"Property 1(1BR) was bought by my husband and I in 2015 at preselling...."


Until you explain what you mean by preselling then it may be difficult to provide a useful answer.

It certainly can't be exempt if you are treating the other property as your main residence. You can only have one home at any one time.

Eligible for 50% discount (assuming you are a tax resident)

ATO Certified Response
RachelATO(Community Moderator)Community Moderator
ATO Certified Response1 June 2026

Hi @ccss,


Property 1 won’t be fully exempt from capital gains tax (CGT) because you used it to produce rental income. The fact that you moved back in for a few months before selling does not make the entire sale CGT‑free, but it does mean that final period is exempt.


When you own two properties at the same time, you can only nominate one as your main residence for any given period. Since Property 2 was your main residence until you moved back into Property 1, Property 1 can’t be treated as your main residence during that overlapping period (while it was rented). You’ll therefore be entitled to a partial main residence exemption for Property 1.


Because you owned Property 1 for more than 12 months, you can then apply the 50% CGT discount. Make sure you keep records of:

  • purchase and sale contracts
  • settlement dates
  • buying/selling costs (stamp duty, legal fees, agent fees)
  • any capital improvements.


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How do I calculate CGT on my property? | ATO Community