CGT Calculation for Main Residence and rental property

This thread is archived and the information may not be up-to-date. You can't reply to this thread.

Rosa26

(Initiate)Initiate

22 Sept 2023

Scenario:

July 2009 - Purchased a Property (property A) and moved in immediately

January 2017 - rented out property A

November 2017 - Moved overseas

February 2021 - Returned to Australia (been Permanent resident throughout the period and property A was still rented out)

June 2021 Purchased another property (Property B) - This became our main residence.

January 2023 - Decided to sell our Property A

Both properties purchased under Husband and wife name.

Question:

Could you please help with CGT calculation for 2022-2023?

Does 6 year exemption apply?

what is the date for the property valuation to be done?

Does ATO require professional valuer to do the valuation or bank valuation is ok?

Look forward to your response. Thank you.

0 likes

266 views

1 replies

266 views

1 replies

Most helpful response

Most helpful reply

DanielleATO

(Community Support)Community Support

25 Sept 2023

Hi @Rosa23,

When calculating your CGT, we can only give you some guidance.

With the 6-year rule, it can get a bit tricky. It looks like you maybe able to apply it after you moved out when you rented it in 2017. We do have a great tool that will help you work out if you can claim the main residence exemption and calculate CGT.

For valuations, a valuation must be objective and supported with appropriate evidence. It does not specify who must do the valuation. Just that valuations that are undertaken by professional valuers. Are more credible than those provided by someone who is not a professional valuer.

We have a great page for market valuation of assets you may find helpful and a guide to CGT and property.