Bought a PPOR in Sydney in 2009 and lived in it for 15 years I moved to Melbourne and rented the Sydney house from June 2014 to June 2015 While initially in Melbourne I lived with a friend from June 2014 until I bought a Melbourne PPOR in February 2015 Sold the Sydney PPOR in October 2015 My understanding is that CGT is now payable, worked out as follows. Is this correct? The cost base on the Sydney house is the market value of the property in June 2014 when I first started renting it out. (How do I appropriately determine its value at that time?) Gross capital gain is the difference between sale price (less costs) less the above market value. I claim the main residence exemption until Feb 2015 when I bought the new PPOR in Melbourne. I need to calculate the number of days from date first rented until October 2015 when the Sydney house was sold. This becomes the “ownership” period. The non-main residence days are then calculated as number of days from Feb to Oct. I then work out what amount of capital gain made by: gross capital gain (calculated above) x non-main residence days / ownership period days this amount is the assessable capital gain. I then reduce this amount by any carry forward losses. once I have this total, as I held the asset for more than 12 months, I take a further 50% discount and now this is the assessable amount. Thanks in advance for comments/guidance.