Hi,
Have been reading up on PPOR and wanted to undersatnd how it may apply in my situation. I am selling my owner occupied property and working on the best tax outcome re Cap Gains Tax that may arise in future years.
I currently have a owner occupied and investment property in same suburb. When I sell my owner occupied I was thinking of moving into the investment for 6 mths, establish principal residence, fix a few things while I'm there, and then look to relocate to the coast and rent this out again.
However rather than this process I wanted to explore whether it was possible to nominate my investment as principla residence after I sell my owner occupied. Say, the buyer was open to a 6 mth rent back this would save the hassle of shifting!Hi Hawkeye,
In short, you have to actually move in.
You can extend the PPORE on a property after you move out (regardless of whether your renting or living in a home you own), but you can’t just nominate one of your investment properties because your currently living in a rental.
Thanks very much. I had a feeling that may be the case (but hoping not). Seems a waste to give up the PPORE as in 3-5 years I plan selling/developing and CGT will unfortunately come into play. Thinking a little ahead but by my calculations the inconvenience of moving now may save thousands later. Looks like more visits to my storage unit!
If you were to move into the rental then out again it could become your main residence and be exempt from CGT from then on for up to 6 years.
Terryw | 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
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