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Kumar18(Newbie)Newbie
22 Sept 2024

Hello, I brought a property "A" in Oct 2007 for a price $310K. I lived in the property (primary residence) till Jan 2018 and rented it to others from Feb 2018. Property valuation in January 2018 was $680K.


Between Feb 2018 to Mar 2020, I lived in another property "B" by paying a rent (I was tenant).


I brought new residence property "C" in April 2020.


I sold original property "A" 23-Feb-2024 to price $800K

Property selling expenses were $24K


How do I calculate capital gain for property "A"?

Can capital gain for property "A" be exempted under 6-year rule?


Thanks



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Bruce4Tax(Taxicorn)Taxicorn
22 Sept 2024

How do I calculate capital gain for property "A"?

Can capital gain for property "A" be exempted under 6-year rule?


Capital gain = 800 K - [cost base]


Cost base of A = 680 K

+ [improvements after valuation]

+ [selling costs]

- [ div 40 + div 43 claimed while rented ]


Choices:


  1. claim exemption for 6 years past date first rented, but treat C as not being main residence till the end of that 6 year period. or
  2. claim 6 year possible exemption only till C purchased

Best to go to a local tax agent experienced with property.


All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
22 Sept 2024

How do I calculate capital gain for property "A"?

Can capital gain for property "A" be exempted under 6-year rule?


Capital gain = 800 K - [cost base]


Cost base of A = 680 K

+ [improvements after valuation]

+ [selling costs]

- [ div 40 + div 43 claimed while rented ]


Choices:


  1. claim exemption for 6 years past date first rented, but treat C as not being main residence till the end of that 6 year period. or
  2. claim 6 year possible exemption only till C purchased

Best to go to a local tax agent experienced with property.


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