All Topics / Help Needed! / PPOR REGULATIONS

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Genesis01Genesis01
    Member
    @genesis01
    Join Date: 2003
    Post Count: 56
    January 23, 2008 - 1:25 am

    Afternoon all.

    What are the regulations behind claiming a property as PPOR

    and therefore CGT exemption.

    We are currently in employer subsidised housing
    can we claim another property as our PPOR.

    We originally lived in the other property for 2 years
    then rented it out for the last 10 years.

    Are we able to claim this property as our PPOR.

    Regards
    Daryl

    Profile photo of blazeblaze
    Participant
    @blaze
    Join Date: 2007
    Post Count: 60
    January 23, 2008 - 4:58 am

    Good question I've been wondering this myself too.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 23, 2008 - 11:26 am

    You can claim a place as your main residence after you have lived in it first. You can still treat it as your main residence while not living in it and renting it out, but only for up to 6 years. If you move in and out again, then the 6 years starts again from the date you move out. Have a look at the Income Tax Assessment Act 1996, section 118-145.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Genesis01Genesis01
    Member
    @genesis01
    Join Date: 2003
    Post Count: 56
    January 23, 2008 - 8:42 pm

    Thanks Terry,

    So what are the current CGT liabilities,

    does the standard 50% CGT apply on the full sale price?

    Also what are the implications then, if I move back into the property?

    Regards
    Daryl 

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    January 23, 2008 - 9:35 pm

    CGT applies to the capital gain ie difference between purchase cost & sales price less any adjustments for depreciation claimed

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 24, 2008 - 9:04 am

    CGs are just added to your annual income and you pay tax on this – so the rate will vary according to your income. If you hold the asset more than 12months, then you should be able to get the 50% reduction in CG too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722
    January 24, 2008 - 10:04 am

    Hello Daryl

    As you have described the situation, if you were to sell you would be up for CGT on 4 years ( being the 10 years you have rented out minus the 6 that you are allowed before you lose your CGT free status.). 

    Hope this helps
    Elka
     

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.