Can anyone in the know PLEASE clarify if this scenario would fit the 6yr rule:
A)purchased vacant land feb 00
B)Portable unit placed onsite,used as I.P. for aprox 2yrs.Claimed as I.P. during this time.
C)Unit removed.Land unused for aprox.1yr.No claims
D)New house construction started mid 03,completed Jan 04.Rented out Jan 04 until Oct 04.
SO…if i then move in for 12mnths min, within the 6yr period,with this as my only PPOR,then sell it,how would my CGT look????[confused2)
Or does anyone have any tips on what i could do to my advantage with this scenario??[biggrin]I should clarify that i mean it will only become my only PPOR after i move in.It would not ever have been so before then.[blink]
I don’t think you could claim it as your main residence until you moved in. As you haven’t yet, you could not claim it as your main residence. If you move in now for 12 months, then that 12 months may be exemption form CGT, but the other periods wouldn’t.
To claim a house as your main residence, you must live in it before renting.
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
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