July 31, 2010

Capital Gains Tax on Investment Property?

By Planet Wealth

Hi.

My husband and I bought a house in Mar 2004. In Mar 2008 I bought out his share, we bought a new house together (which we live in) and I have been renting our original property.

I have two questions:
1. When I sell my rental property will I be able to claim it as my primary residence & avoid CGT if I sell within the 6 year window (ie before Mar 2014)?

2. By claiming the investment property as our primary residence, will we need to pay CGT on the property we’re currently living in when we eventually choose to sell?

Thanks :0)

Topics: renting shares | 1 Comment »

One Response to “Capital Gains Tax on Investment Property?”

  1. mullo Says:
    July 31st, 2010 at 8:10 am

    Yes you will have to pay CGT on the second property, as you can only claim the main residence exemption on one property at a time. The ATO will allow a 6 month overlap to take into account moving house, but that is all.

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