Main residence - 6 year rule

Discussion in 'Accounting & Tax' started by Sydney888, 23rd Oct, 2018.

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  1. Sydney888

    Sydney888 New Member

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    Sydney, NSW
    Hi,

    Scenario:
    Main residence - lived in it for 10+ years
    Moving overseas for work, renting overseas.

    Renting out main residence:
    Case 1 - less than 6 years and return back to live in it: no CGT when I do sell
    Case 2 - more than 6 years and return back to live in it after 10 years: how would CGT apply if I sell it after living in it for another 5 years?
    Case 3?- multiple rental periods each less than 6 years and return back to live in it after 10 years: no CGT when I sell?

    Thanks
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    6 year rule is to be abolished for non-residents so possible none of the above is correct
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    2 people like this.
  4. Sydney888

    Sydney888 New Member

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    1st Jul, 2015
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    Location:
    Sydney, NSW
    Thanks Terry.

    Had a read of the other thread.
    Did not see what happens for case 2:
    Case 2 - rented more than 6 years and return back to live in it after 10 years of rental and is back to be a resident.
    How would CGT apply if I sell it after living in it for another living in it for another 5 years?

    Is CGT on the increased value between:
    X - value when I moved out and rented it out
    Y - value when I moved back in
    50% of (Y - X )
     
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    assuming you are a resident, if you move back in after 6 years it will be subject to CGT, but apportioned as in my link. any CG may be small in that case.
     

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