CGT on a property i lived in first

 Author: Steven1919(Newbie)Newbie

12 Sept 2025

@Taxduck

Thanks Taxduck, can I just confirm this in more detail. My situation is I jointly purchase my family home with my partner in 1997 and we lived there until Feb 2019.

In 2018 I purchased off the plan and paid stamp duty, interest and legal costs leading up to settlement in Feb 2019. In Feb 2019 we moved into the new property and lived there for just over 2 years. During this 2 year period we rented out the original family home and claimed interest and depreciation on our tax returns. We moved back to the original family home and then rented the new property out for a further 4 years. We also claimed interest and depreciation during this 4 years. The property is sold and now I have a CGT event to declare. I'm keeping the original family home as my main residence for the entire period, so can I claim stamp duty, interest and legals for the period that the property was under construction and during the period I lived in there. I haven't claimed any of these expenses previously

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 Author: Taxduck(Taxicorn)Taxicorn

13 Sept 2025

@Steven1919

Your purchase date is the date you signed the contract for the property. Costs incurred as outlined in the cost base link provided can be included in the cost base.

So that includes the costs you mention.

The gain is calculated on the ownership period of the asset. From signing of contract until property is no longer owned. Any expenses you incurred, which aren't tax deductible off rental income can be included in the cost base. (as long as they are one of the cost base elements).

For depreciation claimed then an adjustment to the cost base is required. This link is informative. (check out example - Karl and Louisa)

CGT when selling your rental property | Australian Taxation Office

Sale of property for CGT is best handled by the tax professionals. Be well advised to seek out a local tax accountant experienced in CGT to calculate gain and prepare tax return(s)

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 Author: Steven1919(Newbie)Newbie

13 Sept 2025

@Taxduck

I copied this from the 3rd Element, can I confirm the 'person use' doesn't apply to my situation because i lived in the property for a 2 year period.

You can’t:

• include costs you can claim an income tax deduction for
• include these costs in the cost base of collectables or personal use assets
• index these costs
• use these costs to work out a capital loss
• include these costs if you acquired the asset before 21 August 1991.

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 Author: Taxduck(Taxicorn)Taxicorn

14 Sept 2025

@Steven1919

I don't know what you mean by 'person use'?

If you are referring to personal use assets, then these assets are described below.

List of CGT assets and exemptions | Australian Taxation Office

Real estate is not a personal use asset.

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 Author: Steven1919(Newbie)Newbie

14 Sept 2025

@Taxduck

Third element: costs of owning the CGT asset

The costs of owning an asset include:

• rates
• land taxes
• repairs
• insurance premiums
• any non-deductible interest on loans used to finance 
  • the acquisition of a CGT asset
  • capital expenditure to increase an asset’s value.

These expenses can be included in the cost base only if they are not deductible. This would happen if, for example, they were incurred for vacant land.

You can’t:

• include costs you can claim an income tax deduction for
• include these costs in the cost base of collectables or personal use assets
• index these costs
• use these costs to work out a capital loss
• include these costs if you acquired the asset before 21 August 1991.

I want to claim non deductible interest, then it goes onto say you can't. I understand the 3rd element but i'm not sure what the below point is saying

• include these costs in the cost base of collectables or personal use assets

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