CGT and my PPOR - time lived in the house

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lisap
Member
@lisap
Join Date: 2009
Post Count: 2
September 20, 2009 - 6:06 am
I am thinking of purchasing a house and renovating it whilst living in it. It will be my PPOR during the entire time I own it.
I would like to renovate and sell it quickly – is there a minimum time that I need to live in the house when it is my PPOR (no FHOG applicable) to ensure I have no CGT liability?
Is there a restriction to the number of times I can buy, renovate and sell a PPOR in one financial year and incur no CGT liability?
Any advice is gratefully appreciated
Thanks
Lisa
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 20, 2009 - 12:27 pm
Some points:
– you can only claim 1 property at one time (except for a 6 month overlap period) as your main residence
– No time limit is listed in the legislation.
So as long as it is your main residence you should be ok. The ATO has put out a TD on what they look for to establish if a property is a main residence. TD 51.
If you are buying and selling like a business, there is no exemption from tax – even if a main residence.
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
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 27, 2009 - 11:44 pm
See TD 51 here
http://law.ato.gov.au/atolaw/view.htm?locid=%27CGD/TD51/NAT/ATO%27&PiT=99991231235958
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