The 'six-year rule' for renting out your former home

By George Cochrane
Updated January 25 2018 - 9:53am, first published January 19 2018 - 10:51am

My son purchased a one-bedroom unit for $400,000 in October 2009, and obtained the first home buyer grant. He lived in the unit until May 2012, when it was valued at $560,000 by the local real estate agent. The unit was rented until August 2017 when it was sold for $800,000. Am I correct in calculating that the capital gains tax will be 50 per cent of $240,000, that is $120,000? Can he offset this against his accrued capital losses? P.D.

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