Capital Gain Tax Question

Discussion in 'Accounting & Tax' started by Joey5844, 18th Jul, 2021.

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  1. Joey5844

    Joey5844 Member

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    18th Jul, 2021
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    Sydney
    I bought a property but rented it out initially (5 years). I now live in it and want to sell it (lived for 2 years).

    Am I able to treat this as a PPOR for capital gain purposes (full discount) or does it have to be treated like an investment property as it was initially used as that (i.e. I am eligible for 50% discount only)

    Many thanks
     
    Joey5844, 18th Jul, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can treat it as main residence from the date you moved in. CGT would be worked out on a proportional basis
     
    Terry_w, 18th Jul, 2021
    #2
    craigc likes this.
  3. mr_alex

    mr_alex Well-Known Member

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    Gold Coast
    mr_alex, 19th Jul, 2021
    #3
    Terry_w likes this.
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Dont forget third element costs in the time you live there. And selling costs !!
     
    Paul@PAS, 20th Jul, 2021
    #4
    craigc likes this.
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