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  • Calculating a partial exemption – main residence

    If your home is only partially exempt under the main residence rules, you calculate the taxable part of the capital gain as follows:

    A × (B ÷ C)


    A is the total capital gain from the CGT event

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

    C is the total number of days in your ownership period

    You can use the Capital gains tax property exemption tool to calculate the percentage of your property that's exempt from CGT.

    Example: Main residence for part of the ownership period

    Andrew bought a house under a contract that settled on 1 July 1990 and moved in immediately. On 1 July 1993 he moved to a new house (which he treated as his main residence) and began to rent out his old house.

    The home first used to produce income rule doesn't apply because Andrew used the house to produce income before 21 August 1996.

    A contract for the sale of the house was signed on 1 July 2015 and settled on 31 August 2015. Andrew made a capital gain of $400,000. Andrew's assessable capital gain is:

    $400,000 × (8,098 ÷ 9,194) = $352,316

    Andrew can choose to use the indexation method or the discount method to calculate his capital gain.

    End of example
    Last modified: 17 Jul 2017QC 52195