Is CG tax payable on PPOR if holiday rented and depreciation claimed.

My house has often been holiday rented over the past 8 years for 3 to 8 weeks a year while I am interstate and overseas.

Depreciation on building and white goods, homewares etc has been claimed as well as some mortgage payments (pro rated).

Thanks

 

Income producing so yes.

 

Have you been absent the whole 8 years?

 

From my accountant (I asked this Q at PC as I thought he was away on holidays)

In short, as the property was rented out, Capital Gains Tax may apply when selling the property. However only a portion of the gain will be taxable based on the periods the property was rented out. Based on the information we have up until the end of 2014 – the property was rented out for 32 weeks in total. As you have owned the property since September 2009 – (approx. 370 weeks). Of the gain you make on the property, 32/370th (8.6%) will be taxable. i.e. If you made a gain of say $100,000 - $8,600 of the gain will go into your tax return. On top of this, you are eligible for the 50% discount as you’ve hold it for more than 12 months, therefore only $4,300 would be taxable in this scenario.

 

Were you absent when the property was rented out, or just not there?

 

s118-192 does not apply ?
Absence rule ?
Choice of which property is exempt ?

 

The way I read the post was the OP goes overseas for 3 weeks, rents out the property for 3 weeks and then moves back in until the next holiday.

 

Absence rule for a portion
Taxable for a portion and pro-rata

I would imagine the third element costs will address the minor CGT issue