Capital gains on property Australia?

Question

Initially, the property was bought as an investment. It was rented for over 12 months and then it was vacant until we moved in and it became the principle place of residence. We've been in it for over 2 1/2 years now. We plan to go on an extended holiday next year (we will have then been in the property for 3 years) and sell as soon as we can on our return. Will the 6 year rule apply since it is our PPR currently or will we disadvantage ourselves Capital Gains-wise if we do rent it out again. Our other option of course is to sell it before we go.

Answer 1

I think the 6 year rule should apply more than one (ie. if you move back in betwen 6 month blocks, and can demonstrate it was your main residence during that time). However, you probably miss out on the exemption for the first 12 months because one of the criteria for the exemption is moving in as soon as practicable after purchase.

Agree with the comment above, CGT is complex and you should probably get professional advice.

Answer 2

You will need to contact ATO (www.ato.gov.au) as Capital Gains Tax is very confusing & there is alot of grey areas in the law.