Property – PRE partial exemption 6 yr rule
Question: If i move out of my home do I pay capital gains tax from the day i move out?
In short the answer is maybe yes maybe no.
If you moved out into a new home that you wanted to treat as your main residence (home) then the answer is yes, their is no exemption from capital gains tax from the date you move out.
If you moved out into a new home that you did not want to treat as your main residence (home) then the answer is No CGT would apply or at least a reduced amount of CGT may apply and maybe a reduced amount of capital gains would apply, as there is an exemption from capital gains tax for up to 6 years from the date you move out provided the home you are leaving (main residence) was your main residence from the date of purchase. To read more on this exemption and how to make the election <click here for ATO info> and to find out how to reduce the tax payable or how to calculate whether this is a viable option for you, <contact us>.