Please help, have to make a decision soon.
I'm looking at purchasing a property as PPOR with setllement in September however the property is currently leased until 12/07. My plan is to move in at the end of lease and live in it for 6 months than rent it out for 4-5 years then sell it. Just from reading other posts on CGT am i right to think that this property will not be considered as my PPOR except for the brief 6 months that i live in it and will be subject to CGT for the rest of the ownership period?Tis a big headache!
JezYou will get the 6 year CGT exemption when you move out provided you don't buy another home.
So the first few months should be the only CGT liability that you have as well as any time it is rented after the 6 year CGT exemption.
Cheers,
Sorry Simon. Are you sure that the 6 year rule can be applied if you rented the property out before you moved into it as your PPOR. I didn't think so … but could be wrong.
Definitely worth checking with your accountant first Jez.
Also, if that is the case and you are not planning to buy another PPOR in the 4-5 years you spoke of, then it would be a great loss not to be able to use the 6 year rule. In this case I would definitely offer the tenants some incentive to move before I settled. It's only 3 months.
Cheers
ElkaThanks Simon & Elka for your insight. I will get it checked out by an accountant.
Cheers
JezHey guess what!
From your previous post on the subject of PPOR Elka where you provided a link to the ATO site about definitions of main residence, i went snooping around for more info and came across CGT calculation page. Well i used dummy data modelling my situation and found that you can use the 6 year rule even when you move in late due to leasing arrangements. So then the CGT is minimum only on the initial period of absence!
Thanks Simon & Elka!
JezGood to know. Thank you for that.
Sorry Simon. You were right
Cheers
Elka
You must be logged in to reply to this topic. If you don't have an account, you can register here.
