Hi
I've purchased a house with a settlement date next month. In the interim my husband has been offered a transfer to Europe for 3 years. We currenlty live in rented accommodation. Can we rent out the new house straight away or do we have to wait 6 months or so to avoid future CGT ? We are first time Aussie buyers but haven't applied for the FTHOG as yet – would we be able to claim this? Also, would we be able to claim tax deductions when we return for the interest paid.
Anyone recommend a good tax planning advisor in Perth
Thanks
hi
To claim the PPOR exemption i think you will find that you actually have to live there. See
http://ato.gov.au/individuals/content.asp?doc=/content/36883.htm&pc=001/002/026/017/005&mnu=1051&mfp=001/002&st=&cy=1I don't know where the 6 months comes from probably a corruption of the old Sec27AAA (now 30 years old) which mentioned 12 months…….
Check WA OSR web site for rules on the FHOGhope this helps and have fun in Europe
Tony
You need to live in it first, as Tony mentioned, but the legislation does not give any minimum time frame that you must be in it before moving out, see
s118-145 for absences: http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.htmlTerryw | 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 for the replies. I think we will treat the house as our main residence for a couple of weeks then let. We might not physically live there. Currently investigating what is a main residence.
CheersHi,
I'm guessing from your info you're based in Perth. For FHOG requirements you must live in it for 12 months from settlement date
Check it out here – http://www.dtf.wa.gov.au/cms/osr_content.asp?id=385
Hope this helpsGet some evidence that it is your PPOR – have the bills go there ie gas, electricity & water (all in your name), dept of motor vehicles – change address on licence & regos (you can change it as many times as you like). but you can only claim one PPOR at any time.
Terryw wrote:You need to live in it first, as Tony mentioned, but the legislation does not give any minimum time frame that you must be in it before moving outVStar wrote:Hi,
I'm guessing from your info you're based in Perth. For FHOG requirements you must live in it for 12 months from settlement date
Check it out here – http://www.dtf.wa.gov.au/cms/osr_content.asp?id=385
Hope this helpsIf I did not misunderstand, it is said there that you must live there for 6 continuous months within 12 months from the settlement date.
Scott No Mates wrote:Get some evidence that it is your PPOR – have the bills go there ie gas, electricity & water (all in your name), dept of motor vehicles – change address on licence & regos (you can change it as many times as you like). but you can only claim one PPOR at any time.Is this legal?
Hi Blaze,
I think what Scott No Mates is talking about is claiming it as PPOR so you can get exempt from CGT whereas i'm talking about FHOG which has different set of rules – so if he is talking about PPOR – then yes it's legal – if talking about FHOG – then no it's not legal.
Hope that helps!
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