Main residence exemption

Hi, I bought a property in 2014 for $350k and rented it out for 12 months. I then moved in for 11 months where it was my PPR and then moved out and rented and rented it out for another 2 years. I have just sold it for $550k. How will this be treated for CGT? Is it apportioned on the number of days or is it based on retrospective valuations on the key dates? Does the property continue to be my main residence so the only gain is on the initial 12 months that I rented it out? TIA!

 

could potentially be totally exempt.
Seek tax advice

 

Your accountant will know and tell you exactly

 

He has said that it's all taxable

Thanks Terry, I'm in the awkward position where my accountant is my best mate and he thought I was assessable for the whole gain so hoping to link him with an article 2 but can't see how it would be 100% exempt, is there anything else I'm missing other than the apportioning and 6 year rule? Thanks

 

If he is your best mate and given wrong advice then get some paid professional advice elsewhere.

The fee you pay will well and truly have enormous value compared to your mates advice which is fully taxable which it isnt.

 

If the property has been the only property you owned during the entire period then you may be able to claim the PPOR exemption .
You may have needed to have it as your PPOR for a 12 month min though
Am not up to date on all the requirements
(there are various rules that need to be met. not advise)
Seek another paid opinion

 

I had a client like that. His best friend accountant was costing him around $25k per year because he was doing his tax wrong. The client died and the accountant came to the funeral - I almost queried him about it there, but let it go.

Have another one now whose accountant is wrong and the CGT they will pay this is is $50k more than they should be paying.

I don't know what you are missing based on just a brief paragraph. I suggest you get a second opinion and then you could take the advice back to the accountant or just change - if he is wrong on one thing how much else is it costing you each year.

 

There is no 12 month requirement and this property could even be exempt if other property had been owned during the same period - but it is only possible to claim one of them as the main residence.

 

The way I see it a partial main residence concession may apply unless there was another property already claimed for the period when you actually lived there.

Definitely a case of getting real personal tax advice and not the opinion of a mate who is an accountant BUT may not be a experienced and qualified tax adviser familiar with the main residence exemption.

Third element costs will also reduce the gain in any event. Was that mentioned ?