PPoR to IP and then Sold

[Jabbasp1]

Hello Guys i need to ask a quick tax question.

Property was originally my PPoR and was purchased for $150k 4 years ago. Lived there for 3 years and then moved out and turned property into a IP, at that time house was revalued at $200k. Just recently sold the house for $280k..... Now do i have to pay capital gains on the $130k ($280k (Sold Price) - $150 (Original Price)) or can i pay it from the valuation price of $200k when i made it into an IP?

Thanks in advance

 

[Rob G.]

If you do not treat another property as you main residence during the time you vacated, and the house was previously fully exempt then there is no CGT by the 6 year rule.

If you do not treat is as your main residence whilst not living there, and it was a fully exempt main residence prior to vacating and renting then the cost base is the market value $200k.

You are deemed to have acquired the residence at that date, so if you signed a contract for sale within 12 months then there is no CGT discount.

Cheers,

Rob