CGT 6 year rule

On the face of it from your post it sounds like it should be. Check with someone wise in accounting and finance/law. The man above is one of the very best.

jasedc5r wrote:

Hi All,

I was wondering if I would be eligible for the CGT exemption 6 year rule?

My current situation is I’m selling one of my properties which I lived in for over a year when first purchased. I’m selling the property with tenants and the property is leased for 5 years.

During the period I bought another IP with my brother. I am currently living at home with parents and property 1 would be the only one classed as my PPOR.

Thanks

Not sure what Adam is saying here, but you only get one main residence exemption at any one time, but you could have a potential exemption between 2 or more properties if both had been the main residence. The election to claim one as the main residence is only made in the tax return of the year of sale.

jasedc5r’s property would probably be totally exempt from CGT if it was the main residence from the date of settlement and he has been absent for less than 6 years and it is less than 2 hectares in size and it was not used to produce income while living there. Having 1 or more other properties won’t effect this.