Capital gain tax calculation question

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(I'm new)I'm new

18 Sept 2024

Hi all,

I have a owner occupied property that I purchased and lived in for 12 years. I am planning to purchase and move to another owner occupied property and convert existing one into an investment property.

If I plan to sell this converted investment property in maybe 10 years time, how will the CGT be calculated ? Will it be the difference from the cost price paid for the property or will it be calculated from the value of property when it first became a investment property ?

Thanks

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JDG55

(Enthusiast)Enthusiast

18 Sept 2024

As it was your main residence prior to becoming a rental property and will first earn rental income after 20 August 1996 you would use the market value when it first becomes a rental property.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence---home/using-your-home-for-rental-or-business

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Most helpful reply

JDG55

(Enthusiast)Enthusiast

18 Sept 2024

As it was your main residence prior to becoming a rental property and will first earn rental income after 20 August 1996 you would use the market value when it first becomes a rental property.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence---home/using-your-home-for-rental-or-business

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