Hi all, Scenario: Property purchased for $500k: IP for 2 years with main house and granny flat tenanted. After 2 years, we move into main house. Granny flat remains rented. Property after 10 years is sold at $1mil Property is has only partial exemption from CGT. 2/10 years no exemption 8/10 years partial exemption (PPOR portion vs Granny flat portion) Questions: 1) Is a sqm portion of building size appropriate to calculate Granny flat CGT percentage.? i.e Main residence building size 200 sqm : Granny flat 50 sqm = 25% CGT portion. 2) Where does land come into the apportionment, or does it? Because the final sale price includes land... 3) Is it appropriate to claim expenses for the property in the same portion (or at all)? i.e. 25% of rates, insurance, interest etc. 4) Is it worth while getting a valuation at yr 2 (when making PPOR), and should this include each aspect of the property land\granny flat\main house? I will seek tax advice, however I thought this would be worth discussing due to greater uptake of granny flats recently.