I bought a property in Darwin in April 2003. It was in my name only. I lived in it from the purchase date until end of September 2011.
This property was then rented out from 1 October 2011 until 10/9/13 and I then sold it on 23/10/13.
I purchased another property in Sydney in joint names with my spouse on 5 October 2012 which we have lived in since we purchased it. This is the only property we own. I just need to know if there is any CGT implications on either properties. The Sydney property will never be rented out as it’s our private residence.
Thanks so much for your detailed response. Your assumptions are correct. I decided to pay the small amount of CGT on the Darwin property. To get the market value of the Darwin property when I first rented it out as at 1 October 2011, do I get it from the local real estate agent?. So in simple terms and just as an example & to make this calculation simple by excluding agent commission on sale etc for illustration purposes, say the market value turns out to be $300,000 and I sold the property for $400,000 the capital gain will be $100,000, less 50% main residence exemption ie capital gain will be $50,000, then apply the 50% discount the capital gain will be $25,000?