Hi everyone,
The situation is my partners father is building her half of a duplex and the project is nearing completion. I am in the army and will be posted interstate in the next two months. She wants to live with me ASAP and would like to keep her property as her PPOR whilst renting it out.
My question is, is there a duration of which she must live in her PPOR before she can rent it out IOT eliminate paying CGT if she sells within the next 6 years? Also would just a utility connection bill suffice to prove that she resided in her PPOR before renting out or would she require multiple pieces of evidence?
Your help would be much appreciated, thank you.
Hi Chris,
Best to speak to an accountant but my understand of the law is that there is no set time frame that the ATO has noted. The ATO states that it must a 'reasonable time'.
So my understand is that it could be as little as a month. That this as an example, I decide to live in the property and I do this. I have bills going to this address so I can proof that I was living in the property – then my situation changes in which I need to move overseas and I rent the property out. I do not believe that this is an issue.
Having said all this – clarify it with an accountant.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
No time limit in the tax act, but you need to consider the ATO guidelines. Must establish it as the main residence, not just move in briefly.
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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