Capital Gains Tax ?

We bought an investment unit in NSW in 2015 and rented it out for 2 years, we then moved into the unit in 2017 when we sold our house [ the house was our primary place of resident].

The unit became our primary place of residence when we moved into the unit in 2017

We sold our unit in 2019. So we rented it out for about 50% of the time and lived in the unit for 50% of the time we owned the unit.

We sold the unit in 2019 above the price we purchased the unit in 2015. Most of the capital gain occurred when we lived in the unit.

We'd like some advice / information on what our capital gain tax liabilities are and how they are calculated as we are about to lodge our 2020 tax return

thanks in advance
DWB

 

What does your tax agent say? Assume you have one if you are lodging in april.

 

Hi Trainee, will probably have to find new tax agent as unsure if they usually do these sort of tax returns

 

Work out cost base then work out time it was rented and times the cost base by this.
Then apply 50% discount.

That generally will be the amount you add to you income

 

capital gain will be based on proportion of time

also need to include third element costs for the expenses incurred while the property was your main residence. interest, council rates, etc . all will reduce the capital gain

will also need to adjust for depreciation and/or capital works if you claimed those when it was an investment property

 

They should not be practicing if that is the case.