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Capital gains tax 6 year exemption applicable?

Newbie

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Replies 3

2015 apartment was purchased with the intention of becoming main residence. Was tenanted on purchase so let the tenants finish their lease before moving in. Rental income was declared. Moved into the apartment within 12 months of owning and lived in the apartment as main residence for 13 months. Then moved out due to relationship breakdown and the apartment was rented again after we moved out. Rental income was declared for this period. No other property has been purchased in the meantime. 

Can I claim the apartment as my main residence and use the 6 year rule so that the time from when I moved into the apartment to the sale is exempt from CGT? 

 

This would leave the CGT period as the purchase date (using the actual cost base) to the day before I moved into the property and would exclude the time it was rented after I moved out. 

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ATO Certified Response

ATO Community Support

Replies 2

Hi @JD91,

 

This is an interesting question.

 

If you did not use any other dwelling as your main residence during the time you rented out the apartment you can use the 6 year rule.

 

Well worth having a read about when a dwelling stops being your main residence.

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 2

Hi @JD91,

 

This is an interesting question.

 

If you did not use any other dwelling as your main residence during the time you rented out the apartment you can use the 6 year rule.

 

Well worth having a read about when a dwelling stops being your main residence.

Newbie

Replies 1

one further question please - can the costs incurred while I lived in the property as my main residence be added to the cost base for CGT calculation? 

costs - interest paid on loan, rates, body corporate 

ATO Community Support

Replies 0

Hi @JD91,

 

If the property was used to produce assessable income you can look at information on cost base and elements of the cost base. This advises what can be included in relation to expenses you incurred whilst owning the property.

 

We have also answered a similar post on our forum, you can view our response here.

 

Links -

Cost base.

 

All the best.