Has anyone had any trouble with CGT (that is had to pay 50% tax of profits within the 1st 12months) when they have strated already rented units? Are you able to give the current renting residents rent free periods to avoid paying CGT or do you have to pay CGT on any property that you make money on?
My understanding was that CGT was applied to all property. However, a 100 % exemption applies for PPOR and a 50 % exemption for non PPOR properties if held greater than 12months from the date the contract was signed. Given your property is not your PPOR, I would have thought you were subject to CGT upon the sale. Perhaps if you held the property greater than 12months you would be entitled to the reduction. I dont see how giving a tenant a rent free period would negate CGT but then again, I am not an accountant and the above is only what I have learned from experiance with my own properties.
All the best
Tammy
Thanks Tammy,
That makes a lot of sense.[blush2]
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