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Romeo Void

Capital Gains and the family home

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Romeo Void

We've owned and lived in a house for 30 odd years. Last year we moved out and were planning on selling but that's not looking like great idea at the moment so we're renting it out for a while. I know you don't pay capital gains on your primary place of residence, but what if we end up renting it out for a year or two...is it worked out on a pro rata basis? I'm wondering if we need to get it valued now so we can work out capital gains in a year or so..or is it something they have a formula for and a valuation would be irrelevant??

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IamOzgirl

You have 6 (or 7) years that you can rent it out before it is subjected to CGT.

 

I sold my place at 9 years. I only had to pay CGT on the last couple of years.

 

My advice is to get it valued now. so you have a comparison.

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PrincessPeach

^ but for that exemption to apply you cannot own another property in australia.

 

If you do own another property, i'd get the original one valued now, it will give you more options for calculating the capital gain when you do eventually sell.

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Romeo Void

Thanks for that, I will get the valuation done ASAP! I suspect there wont be much capital growth for anyone for the next year or two though.

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