I am currently selling my ip as it is neg geared and in personal name. As we had also lived in it , apparently we will only have to pay capital gains for the last year. Is it best to wait until settlement to access the excess money for investing in more property of course positive property, or should I use the equity while it is still in it. Also if I were to consider doing a wrap on it, when would the capital gain be due?
Thanks Jacqui[
]If you are selling your IP, then it is probably better to wait for it to be sold to access the money, otherwise it would get complicated.
BTW, you many not have to pay CGT at all, check with a good accountant.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jacqui, was it a PPOR before an IP, or IP, PPOR, IP?
As Terry said, that will define whether or not you have to pay any tax at all. Also depends on whether you live in your own home now also, but can still be done.
Cheers
MelHi Mel, the property was a ip first then we lived in it for about 1 1/2 years and is currently an ip again. We moved out in October 2002, but did not buy a ppor until March 2003. We are still living in the 2nd property now.
Thanks for taking the time to reply b4 Jacqui
Jacqui, I would check it out, cos my understanding is that you would have to pay CGT for the initial period it was rented also.
Cheers
Mel
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