Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

CGT 6 year rule

Notify me of new replies via email
Greenbubble | 03 Apr 2016, 06:21 PM Agree 0
Hello everyone,

would appreciate some advice on the following.

Situation -

House A - Lived in for 5 years then rented out for just under 6 years.

House B - Lived in for just under 6 years while renting property A.

I am selling house B

I will be moving back into house A

Question -

If I claim my main residence exemption for house B how would my CGT be calculated for house A be calculated when I sell it in the future?

thanks in advance

Brendan


  • pc | 04 Apr 2016, 04:38 PM Agree 0
    Brendan,

    I think your issue is that you can't claim two properties as your principle place of residence.

    The first 5 years of House A is CGT free, the remaining period of under 6 years would not be CGT free as you would have claimed House B as being your priniciple place of residence. Therefore, the 6 year rule does not apply to you. It only applies when you do not claim another property as your principle place of residence.

    Would love to hear some feedback if I am wrong.

    Regards,

    pc
Post a reply