Question - CGT

[bettedavis]

Hi all

I read that if you move out to a new home and rent out your previous main residence, it will reset CGT cost base (and acquistion date re 50% discount) at the first date when it became a rental.

So (excuse me if I am asking a silly question) in terms of calculating CGT for a future sale of the previous home, the period you lived in the old home before the move out, will become irrelevant?

Thanks in advance.

 

[dan c]

That's correct Bette. The cost base for CGT calculations is the value of the property from when it first produces income.

 

[coastymike]

i wrote an article on this a while ago and covered a few of the different scenarios

http://www.omegapartners.com.au/2010/12/capital-gains-tax-renting-the-family-home/