How long must a owner live in his investment property before the Gapital Gains tax is reduced and what is the reduction
Felish
It must be your only home and there is no timeframe.
If you sell your home there is no CGT payable unless it was an IP prior to being your PPOR.
In this case the CGT is proportioned over the period you rented it vs the total time you owned it.
There is also a 50% reduction if you owned the asset more than 12 months.
Seek professional taxation advice before making any decisions.
Hope this helps,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There is no reduction for moving in. It just stops being payable from the day you move in until you move out again.
It is a good idea to get an independent valuatin done to know the value of the property on the day you moved in and keep this for when you sell the property and have to pay capital gains tax.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
You must be logged in to reply to this topic. If you don't have an account, you can register here.
