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Mum24girls(Newbie)Newbie
13 Feb 2025

Hello all.

I am hoping for advice please… my ex and I purchased a house together (PPR) and then due to break up we have just sold it however less than 12 months ownership.

We used to have his son living with us and he paid an amount each week to his dad.

I applied for stamp duty exemption but was denied that so we got a bill for the $7000 (approx) from state revenue but that was because my ex said we were renting the room out to his son.

Will we now be liable for capital gains tax as we sold the property for a profit, and if so will it be a joint bill or do they do 50% each?

thank you.

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Most helpful reply

AriATO(Community Support)Community Support
25 Feb 2025

Hi @Mum24girls


If you owned the property jointly, you'll need to work out CGT for your share. Whether you'll have a capital gain or loss depends on if you're entitled to any exemptions. Since this is your home, the most common is the main residence exemption.


What you need to work out is if the arrangement with the son was that of a domestic nature - paying board or in line with normal commercial practices in this area. If it's a domestic arrangement you don't declare rent as income and nor would you be eligible to claim expenses.


If you received rental income, check out using your home for rental or business. This would affect the main residence exemption.


Have a read through the links. When you're ready, you can use our CGT tool to calculate your capital gain or loss for your share of the property.

All replies

Most helpful reply

AriATO(Community Support)Community Support
25 Feb 2025

Hi @Mum24girls


If you owned the property jointly, you'll need to work out CGT for your share. Whether you'll have a capital gain or loss depends on if you're entitled to any exemptions. Since this is your home, the most common is the main residence exemption.


What you need to work out is if the arrangement with the son was that of a domestic nature - paying board or in line with normal commercial practices in this area. If it's a domestic arrangement you don't declare rent as income and nor would you be eligible to claim expenses.


If you received rental income, check out using your home for rental or business. This would affect the main residence exemption.


Have a read through the links. When you're ready, you can use our CGT tool to calculate your capital gain or loss for your share of the property.

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