How do I calculate the CGT if I turn my investment property to main residence

 Author: Taxduck(Taxicorn)Taxicorn

23 May 2025

I already own a home and recently purchased another property for $950,000 as an investment

Is this recently purchased property the one you purchased 10 years ago? And the home you already own is the original one you sold? I am assuming it is. Also assuming the property is on less than 2ha and you are an Australian tax resident.

All years have to be converted to days. Calculation will be as follows:

Sale price - cost base = gain x days property not main residence/days of ownership.

There are other costs you can include in the cost base. Purchase and sale costs, ownership costs when the property was not rented including loan interest (if applicable). See the cost base elements below

Cost base of assets | Australian Taxation Office

So the exempt portion will be somewhere around the 80% mark

Don't forget the 50% discount on the gain.

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