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GC23(I'm new)I'm new
26 Jan 2024

We bought our house 2 years ago. It’s our only property, hence our main residence for CGT purposes.


We will be moving overseas shortly and might not have sold it before we leave. I understand that, as a foreign resident, we’d be liable for the CGT if we sold the house while overseas.


But did the house still count as our primary residence until the date we move? i.e. from which date is the capital gain counted? (Hypothetical numbers below)


  1. March 2022: bought house for $1.5m.
  2. Live in house as primary residence until March 2024. Value now is $1.8m
  3. Leave country in March 2024.
  4. Sell house in July 2024 for $1.85m

Is the capital gain;

a. $350k because that’s the difference between purchase and sale price?

OR

b. $50k because that’s the difference between the sale price and the value when it was still counted as our primary residence? (Which should be exempt)


thanks.

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312 views
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Taxduck(Taxicorn)Taxicorn
26 Jan 2024

Neither a or b (but b is pretty close). The gain is calculated by deducting the cost base (purchase plus other costs) from the sale price. This gain is then apportioned for the number of days it was not your main residence.

Gain is $350K. Days owned property 880. Days main residence 730. Days not main residence 150.

150/880=.17

$350k x.17=$59.5k

So, the sooner you sell the smaller the gain. Sale date is the date on the contract of sale.

All calculations are made in days. Above calculation only if property left vacant. If rented then cost base would be market value of property when first rented.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
26 Jan 2024

Neither a or b (but b is pretty close). The gain is calculated by deducting the cost base (purchase plus other costs) from the sale price. This gain is then apportioned for the number of days it was not your main residence.

Gain is $350K. Days owned property 880. Days main residence 730. Days not main residence 150.

150/880=.17

$350k x.17=$59.5k

So, the sooner you sell the smaller the gain. Sale date is the date on the contract of sale.

All calculations are made in days. Above calculation only if property left vacant. If rented then cost base would be market value of property when first rented.

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Calculating a capital gain when the status of the property changes from primary residence to not | ATO Community