Evening all,Any help appreciated...Property purchased in March...

  1. 1,278 Posts.
    Evening all,

    Any help appreciated...

    Property purchased in March 2003, lived in until March 2004.
    Moved in with friend March 2004, and rented out old home.
    Sold rented house in August 2010 (without living it again).

    Is there a case for the 6 year rule - or a portion of it? is it a standard 50% CGT discount?
    I will speaking with my accountant during the week, but keen to hear what others think.

    New (home) not purchased until November 2007.

    Reason I ask is (as taken from the ATO website) -

    http://www.ato.gov.au/content/downloads/NAT4151_07.pdf

    page 74

    "Home ceases to be the main residence and is used
    to produce income for one period of six years

    Lisa bought a house after 20 September 1985, but
    stopped using it as her main residence for the 10 years
    immediately before she sold it. During this period, she
    rented it out for six years and left it vacant for four years.
    Lisa chooses to treat the dwelling as her main
    residence for the period after she stopped living in
    it, so she disregards any capital gain or capital loss
    she makes on the sale of the dwelling. The maximum
    period the dwelling can continue to be her main
    residence while she used it to produce income is six
    years. However, while the house is vacant, the period
    is unlimited, which means the exemption applies for
    the whole 10 years.
    In addition to this, as the dwelling is fully exempt because
    Lisa made this choice, the home first used to produce
    income rule does not apply"

 
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