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Is capital gain only for the period that a property is rented if it was a primary residence?

Posted 20 November 2015 under Tax Questions



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Janieke says:
20 November 2015 at 9:32

I would like to sell a rental property which was my primary residence from 1 September 2007 -30 June 2012. It has been rented out from 1 July 2012 till the date of sale? December 2015. This means it was my primary residence for 5 out of 8 years. Is the capital gains calculated for the 3/8 years ie: 37,5%?

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TaxTimTaxTim says:
20 November 2015 at 9:44

Yes, the portion of the gain which will attract capital gains tax will be for the rental period only i.e 37,5% of the total gain. One third of this amount will be added to your taxable income.

Please make use of our Capital Gains Tax Calculator to assist with your calculations.


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