Capital Gains question

HYPOTHETICAL SCENARIOS
Scenario 1:-
Ppor bought 2017 for 400k live there till 2019.Bought another house for 400k and moved there.first house rented.Stayed in this house till 2023.Moved back into first house( for 6 year rule).second house rented.In 2025 when first house worth $600k and second house worth $600k and I sell both how much Cgt will I pay.

Scenario 2:-
Ppor bought 2017 for 400k and lived in.Investment property bought in 2019 for 400k and rented .If both houses sold in 2025 for 600k each and I sell both how much is the Cgt.

Please provide calculation if possible

 

1. Who could say without knowing all the details?
You don't even say if or which property would be sold!
Either one could possibly be CGT exempt, but would depend on the circumstances.

2. Who could say without knowing all the details?
PPOR might be exempt, but depends
IP possibly nil to $60k, but...

 

I will edit the question...Above is Hypothetical scenarios.Have updated that I sell both properties at same time in 2025.What details are required to answer the scenarios? I have mentioned the buying price,selling price,dates lived in and not lived in periods.

 

Also the reason I have asked this question is I am trying to decide whether buying a investment property while staying in current house or Moving to new house while renting current house would be beneficial...Of course moving into a place to live would have a bigger outlay than investment property eg might have to spend 800k whereas investment property wont spend more than 500k..But wanted to keep hypothetical scenario simple and hence 400k for live in or investment

 

Since it appears you lived in each property immediately after you bought it, it will be up to you to apportion the PPOR exemption between each property, bearing in mind that you can only have one at a time.

If you sell both, your accountant can “run the numbers” to advise the best option.

You should never base your investment decisions solely on tax benefits.
Marg

 

I don't think apportionment is necessary for scenario 1 - in fact is can't be used for property 2, or 1 i think.
Scenario 2 no apportionment either.

 

Thanks for the reply...still not sure whether scenario 1 or scenario 2 is better.and what would the Cgt difference be.

 

The amount would also depend on your marginal rate at the time of sale.

- Andrew

 

You need to get specific tax advice. too many variables. Claiming the exemption on 1 might be better. The good thing is if you live in both properties after settlement of each you could get to choose either as exempt upon sale - depending on a few things

 

Cool thanks