Could someone please help me with these two questions
1.Can I buy a property with my long term girlfriend as a investment property for myself and a PPOR for my girlfriend, as I am too far away to live there?
2. If my girlfriend and I were to become defacto within the future would the 6 year CGT be exempt from that property even though I bought the property as an investment?Thankyou
These are very tricky questions. I would steer away from trying to make something to complicated for the ATO. I dont think it would be possible to buy it in 2 names and have 2 different applications of Investment and PPOR.
With respect to your second question- say if you bought a investment property – and you went to live there without the fact that it your girlfriend was living there – you would have to pay GCT for the portion of the time that it was an investment property – but you cant kind of say its a Investment property then also ask for an exemption. I think you need to make some clear decisions about what you are buying it for and what you plan to do with it in the future.
Have a look at ATO web site: http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=CGT_and_real_property.XR4&go=ok
Talk to an accountant if you are not already. It may cost you some $$ but it will be more than worth it if you get it wrong.
I can recommend an accountant if you need one who understands property.You cannot claim a main residence exemption unless you live there first.
But if you are a defacto couple and your spouse lives there that would probably qualify for extablishing it as your main residence as long as you or her are not claiming any other property as your main residence at the same time.
Seek tax advice first.
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
Terry is right- I would still steer clear of making it too complicated. Just asking for ATO to have a closer look at it.
Maybe even buy an investment property with your girlfriend and have her live somewhere else?
Do the sums- trying to make gains by trying to apply complicated tax applications is so not worth it.
You may do better to buy something in joint names and have agreements on how this is to work and what happens if … Heaven forbid you dont work out…. and it has happened before and there have been posts here…. Cover yourselves for all angles.
I truly loved my ex too…………..
You must be logged in to reply to this topic. If you don't have an account, you can register here.
