How to Calculate CGT When Changing Owner-Occupied to Investment Property Then Sale

(Initiate)Initiate

1 Oct 2025

We got our first home in 2012, we lived there for 10 years, then change the owner occupied to investment property in 2022, then we moved to out to another house as our owner-occupied house. In 2024, after renting for 2 years, we decided to sale the investment house. I am not sure how to calculate the tax. The sell price was lower than market value in 2022 but greater than the purchase price in 2012. Different accounts telling me different things, one said need to calculate by pro rata, others tell me CGT only compare with the time the house change the purpose.

Can someone help me with these issues? I am confused.

Thanks so much for your help.

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Taxduck

(Taxicorn)Taxicorn

1 Oct 2025

Cost base for a property that was your home before producing income (e.g.rent) is the market value of the property as at that income producing date. See below for this rule

Using your home for rental or business | Australian Taxation Office

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SerenaS

(Initiate)Initiate

3 Oct 2025

Thanks so much for your reference. Can I use real state agent’s report for the market value for calculating CGT in this case? @Taxduck

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Taxduck

(Taxicorn)Taxicorn

4 Oct 2025

Depends on how good their report is. This link explains what a market valuation report should include.