Capital Gains on Primary Property that has been rented

Hi Guys,

First post to this forum, so thought I would start with a fun tax question.. hmm... maybe not

We have a house that we have owned for about 8 years. During this time we have lived overseas on short stints, so we have rented the house twice for short periods. Most recently we rented it out in 2016 for 12 months while we were away.

We are now thinking of selling this house to buy elsewhere. But, we would like to rent it in the meanwhile while we see what happens in the NSW market. We are in QLD.

Is there a maths equation I should use to make sure that I wont pay Captial Gains for renting the property too much.

Thank you!

 

It may or may not even be subject to CGT at the present time. Did you live in it ?? Have you ever lived in it ? Dates etc are important.

Its not a maths equation but one of tax advice to confirm the use for the whole period since acquisition. The impact of s118-192 may also be a factor as may the absence rule. However periods while overseas and NOT a tax resident could also impact but that may be less a concern

 

Hi Paul,

Yes - we lived in it for most of the time we have owned it. Even now it is still our principal.
In the 8 years or so we have owned it - we have lived in it for at least 5, and it's been our primary family home.

I was still being taxed while overseas - as I was on long service leave.

Thanks for your response

 

It could potentially be CGT exempt
forumla is
Exemption = Date moved out + 6 years

 

Did you live in it immediately after settlement?
Have you been absent for more than 6 years?

 

I did say the dates were important. So many issues.

1. Occupancy as soon as practicable after settlement
2. Dates of occupancy and absence
3. Date first used to produce income ?
4. For 3., what was the market value on that date ?
5. For any absence while overseas detail about tax residency may be important

And thats a start

Then there may be issues with land tax with a choice to rent it