Examples of CGT calculations affecting real estate

There are a number of other examples in this publication that explain how to calculate your capital gain or capital loss on the sale of real estate:

• calculation of capital gain (including worksheet) where a person can choose the indexation or discount method to calculate their capital gain – see example of Val.
• calculation of capital gain on property owned for 12 months or less – see example of Marie-Anne.
• recoupment of expenditure affecting CGT cost base calculation – see example of John.
• deductions affecting CGT cost base calculations – see example of Zoran.

Main residence

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

Generally, you can ignore a capital gain or capital loss from a CGT event that happens to your ownership interest in a dwelling that is your main residence (also referred to as 'your home').

To get full exemption from CGT:

• the dwelling must have been your home for the whole period you owned it
• the dwelling must not have been used to produce assessable income, and
• any land on which the dwelling is situated must be 2 hectares or less.

If you are not fully exempt, you may be partially exempt if:

• the dwelling was your main residence during only part of the period you owned it
• you used the dwelling to produce assessable income, or
• the land on which the dwelling is situated is more than 2 hectares.

Short absences from your home – for example, annual holidays, do not affect your exemption.