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geremy g.
geremy g.
Katherine East, NT
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We are selling our home which we have owned for 6years, we have rented it out for the last 6 months, do we pay CGT?

7 years ago

Responses

Hi Geremy,
Having owned the home for 6 years before you rented it out, I would expect that the majority of capital appreciation occurred prior to it becoming available for rent.
You should be able to show that there is no capital gains tax to pay.
I would recommend talking to an accountant/tax adviser prior to the sale being completed to ensure you get everything in order
Best regards
Scott

Hi Geremy,

So long as you lived in the house for the period before you rented it out you will still be able to sell the house without havig to pay capital gains tax.
The ATO allows you to treat a former home as your primary residence for up to 6 years after you leave it (and rent it out) without having to pay capital gains tax. Refer to the following website.
https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

Regards
James

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