I purchased an apartment OTP in 2013 and lived there from 2015 (the date is was completed) until Aug 2019. I bought another and moved into the new one (Aug 2019) and rented out the first one. I had a bank valuation done at that time. Prob should have had a proper one done as it would have been higher than the conservative bank val. Am I liable on CGT for the 1.5 years (approx) I havent lived there? If so, how do they work it out? Do they look at the difference between a current valuation and the one done when I moved out? Or do they use some other method?
Yeah Ive emailed my accountant - I'm probably impatient but thought Id make a post. I claimed tax on it for the 1.5 years and my current understanding after reading a couple of articles is that I will have to pay CGT on it.
The cgt main residence construction rule, residence rule and absence are all are needing to be confirmed
The ATO website has a lot of good info and examples to give you a better idea Treating a dwelling as your main residence after you move out
Yeah I saw that I just dont trust the ATO to go deep into details. My accountant got back to me - he reckons I have to pay it.
I would agree with Terry's view. I do NOT see that tax is applicable although several issues need confirmation. Nothing complex to be honest adn a routine question for any property savvy tax adviser. If the former home is treated as the main residence under the absence rule then the newer property will incur a future CGT issue based on time apportioning. But you need to understand that and the benefit it brings. Now its non-deductible ownership costs could become "deductible" for CGT purposes. You just need to know what to maintain as records to acecss that. I would also agree it may even be worth getting a proper val. depends
