Hi All,
In regards to the Tax Free 6 year time frame does that start when you first move out of your PPOR and rent it out, or does the 6 years restart if you move back into your PPOR for a while and rent it out again?
It’s just that I have a rental which was my PPOR, then I rented it, moved back into it, now I’m renting it again…
cheers
wayne
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)I am pretty sure that it restarts.
Cheers
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
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Hi Wayne,
I think you should double check with the ATO, as although the 6 year exemption period may well restart, if you were claiming another PPOR during your absence, you will be liable for CGT apportioned for the time in which you were using it as an IP.
Cheers,
Jo
Hi Monopoly,
during my absence i’ve been renting other houses -or living in new IPs I’ve been renovating to rent out…
cheers
wayne
Yeah, it restarts again if you move back in, and as Monopoly said, you can only have one PPOR at a time.
Here is an example from TD 95/9 :
Gary works for the Department of Foreign Affairs and Trade and is posted overseas for a period of 4 years. While he is overseas, his post-CGT SPR is rented. On return to Australia, Gary resumes residence in the dwelling for a further period of 4 years. He is posted overseas for another period of 4 years. The dwelling is rented again during this absence. On return, Gary sells the dwelling and elects for the purposes of subsection 160ZZQ(11) for two periods of income-producing use totalling 8 years.
Subsection 160ZZQ(11) treats the dwelling as Gary’s SPR during the two periods of absence. This is because the dwelling ceases to be Gary’s SPR on two separate occasions and the periods of income-producing use have not exceeded six years in relation to each period of absence.
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
thanks Terry!!
Wayne Leech
*Below are links to my websites – any feedback, comments would be appreciated:)
http://www.landsearcher.com.au – List your land for FREE (Private sellers only)
http://www.homesearcher.com.au – List your property for FREE (Private sellers only)Also to note that when you move out of your PPOR, or just prior to, make sure to have a proper valuation done for future tax reasons. At least that is what my accountant said a couple years back.
Shawn
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