To start i do intend to apply for a private ruling with the ATO But would like general advice or anyones opinion prior to doing so Got 2 scenarios (both different properties) Scenario 1 Purchased PPOR Lived 12 months Renting out PPOR (<6 years) While renting built a second dwelling on lot (dual occupancy with subdivision) Intention was to move new dwelling when completed and rent out existing dwelling While renting and building due to financial difficulty (eg debts) considering selling both properties Able to complete construction (eg negotiate deffering debt payment) (for the sake of this thread lets not argue the above facts - I know it can be argued that the intention was development was income and not investment) Options 1) Sell both - does CGT exemption apply to both or just dwelling that was inhabited in the 12 months? 2) Sell older dwelling and move into newer dwelling for a period then sell. Would CGT exemption apply to both fully? Could it be applied to the original dwelling fully, then new dwellling for the period it was inhabited? When did the new dwelling become an asset? Scenario 2 Buy investment property Rent property While renting built a second dwelling on lot (dual occupancy with subdivision) Intention was to build then subdivide but due to financial difficulty need to sell upon completion Would CGT discount apply after 12 months of the IP purchase?