Trying to work out if we need to pay CGT?

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 · Accepted Answer

TaraATO · Answer

Hmm depends. We can't say for sure as we don't know every aspect of your situation, but it sounds like you might be eligible for our 6-year rule (https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence---home/treating-former-home-as-main-residence#:~:text=you%20move%20out-,How%20it%20works,-Your%20main%20residence). This is where you can move out if your main residence and use it for income earning purposes for up to 6 years. And still have it be considered your main residence and be exempt from CGT. The eligibility for this is: - it was your main residence first - you can't apply the exemption to a period before a property first becomes your main residence. (for example, if you rented out your home before you lived in it, the main residence exemption doesn't apply to the period you rented out your home) - it stopped being your actual main residence (https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence---home) - that is, you stopped living in it.

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