Person A owns two houses, one has always been a principal residency while the other is a holiday house which has never been rented out. If the person sells the principal residency and the holiday house becomes the principal residency, is it possible to avoid paying CGT when this person eventually does sell the Investment Property-turn-Principal Residency?
No. However, if person A dies while the holiday house is his PPOR, the holiday house will be exempt under the CGT legislation.
From your posts this evening you are either doing an open book exam or you have an extremely complicated life. If the latter is your situation you need to simplify your life.
Tell me about it
Although the Stamp Duty topic is not about me. Phew!
With the investment property, if the person has owned it for 10 years, but has only lived in it for 5 years, the other 5 years it just sat there, wasn't being rented out or anything. When the person sells the house, will they have to pay 100% of the CGT or 50% because for 50% of the time it was their primary place of residency?
Normally the gain would be apportioned between the periods it was not being used as the PPOR and the time when it was subsequently the PPOR
not_so_lucky wrote:Tell me about itAlthough the Stamp Duty topic is not about me. Phew!
With the investment property, if the person has owned it for 10 years, but has only lived in it for 5 years, the other 5 years it just sat there, wasn't being rented out or anything. When the person sells the house, will they have to pay 100% of the CGT or 50% because for 50% of the time it was their primary place of residency?
This would depend if it was a main residence first – probably not from your first post.If wasn’t you main residence first then it would be apportioned over time. Once it became the main residence if it was then relet then there would be 2 parts to the calculation. First period would be apportioned over time and the second period would be on the growth after moving out.
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
Thanks all.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
