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Re: CGT discount - foreign resident

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Newbie Registered Tax Practitioner

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Replies 2

Just want to double check on my thoughts based on the following facts,

 

Main residence was bought in 2008 (satisfying all main residence requirement for CGT exemption purpose), moved out due to living overseas and rented the property in 2010 till 2018 when sold. The owners were foreign residents during 2010 - 2018.

 

My initial thoughts on the CGT pro rata, on a simplied manner, is:  (sale price - MV in 2010) x [(2018-2016) / (2018-2010)], 

Then i was wondering if the 08/05/2012 CGT discount removal for foreign residents will play a part in this case? If so, should the calculation be: (sale price - MV on 08/05/12) x [(2018-2016) / (2018-2010)]  + (MV on 08/05/12 - MV in 2010) x [(2018-2016) / (2018-2010)] x 50%CGT discount   ?

 

 

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Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Pym,

 

Thanks for your question!  We can provide you with general information on our Community.  The best way for you to confirm if a CGT discount applies in this situation is to review this information on our website and use the GCT discount worksheet to calculate the CGT discount you can apply, based on the property owners situation.

 

I hope this helps, JodieM

2 REPLIES 2
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Newbie Registered Tax Practitioner

Replies 0

 
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Pym,

 

Thanks for your question!  We can provide you with general information on our Community.  The best way for you to confirm if a CGT discount applies in this situation is to review this information on our website and use the GCT discount worksheet to calculate the CGT discount you can apply, based on the property owners situation.

 

I hope this helps, JodieM