As the Australian house was rented out for more than six years, even if you elected to use the absence rule to continue treating it as your main residence for capital gains tax (CGT) purposes after you moved out, the maximum period of exemption would be the first six years of rental
An owner can move back in to re-establish a property as their main residence when the six-year absence period expires. If the main residence requirement during the second residence period is satisfied, the owner will be entitled to another six years of capital gains tax (CGT) exemption if they later move out and rent it again
You must work out capital gain or loss using the market value of the dwelling at the time you first used it to produce income
Is it possible to only claim four years instead of six so that when we sell our other house we would only pay two years of CGT?
It is considered that I’m making no profit and hence pay no CGT