• Dwelling is your main residence for only part of the period you owned it

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If a CGT event happens in relation to a dwelling which you acquired on or after 20 September 1985 and that dwelling was not your main residence for the whole of the period you owned it, you get only a partial exemption.

    The capital gain on which you may have to pay tax is calculated as follows:

    Total capital gain made from the CGT event

    X

    number of days in your ownership period
    when the dwelling was not your main residence
    total number of days in your ownership period

    Example

    Main residence for part of the period of ownership

    Andrew bought a house on 1 July 1990 and moved in immediately. On 1 July 1993 he moved out and began to rent it. He sold it on 1 July 1999 and made a capital gain of $10,000. The amount of capital gain subject to tax is:

    $10,000 x

    2191
    3287

    = $6666

    As Andrew sold the house prior to 11.45 am on 21 September 1999, he cannot claim the CGT discount but may apply indexation to the cost base.

    Last modified: 18 Sep 2009QC 18323