hi,
I have lived in my home for 3 years now and previously had it rented to tenants for 10 years. Can anyone tell me what my CGT liability would be if I was to sell? Is it calculated on 10/13ths of the capital gain (taking the 50% reduction into account) or is there any exemption as I have lived in the house for the past 3 years?
Any info would be greatly appreciated.
timwr
You wouldn't get the full exemption because you only moved in a later.
I am not sure which way, but it would be assessed on either the
a) 10/13 x CG
or
b) CG during the first 10 years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Because your property was rented first, then you moved in, you would pay CGT on the 10/13ths of the capital gain. x 50%. For the 6 year rul exemption, you must have lived in the property first.
I agree with Dan, the “home first used to produce income rule” does not apply, nor does the 6 year ppor extension. so its 10/13ths of the total gain.
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