All Topics / Help Needed! / Capital gain tax for main residential
Hi expert,
I’m new to this forum and really appreciate any help. I’m currently reside in my main residential for the past 6 years. I’m planning to build a new house for main residential purpose and plan to move into it immediately upon completion sometimes next year. I would like to find out if I’m subjected to any capital gain tax for the new house?Regards,
RickeyHi Rickey,
You wouldn’t be assessed for CGT on the new house until such times as you were about to sell it, and any CG Tax at that time would depend on “what else had happened between now and then”.What are your plans for the OLD home though? Are you planning to sell it? It sounds like it might be CGT exempt based on your words – but I am not an adviser, so don’t take my answer as gospel. It also depends if it was your PPOR (Principal Place of Residence – or home) for the whole time since you bought it. If not, then there “might” be some CGT to pay when selling it, depending.
Benny
Hi Benny,
Thanks for the prompt reply, I intend to sell my OLD home and move to my newly built house upon completion. I am very certain that I will be exempted for the CGT for the OLD home, I would like to find out if I am also exempted for my this newly built home (as I read somewhere that the overlapping time of six months for 2 PPOR can be applicable) Thanks again.
Hi Rickey,You wouldn’t be assessed for CGT on the new house until such times as you were about to sell it, and any CG Tax at that time would depend on “what else had happened between now and then”.
What are your plans for the OLD home though? Are you planning to sell it? It sounds like it might be CGT exempt based on your words – but I am not an adviser, so don’t take my answer as gospel. It also depends if it was your PPOR (Principal Place of Residence – or home) for the whole time since you bought it. If not, then there “might” be some CGT to pay when selling it, depending.
BennyNot enought informaton to answer, but possibly exempt. But the existing house would then be subject to CGT.
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
Hi Rickey,
I would like to find out if I am also exempted for this newly built home (as I read somewhere that the overlapping time of six months for 2 PPOR can be applicable) Thanks again.
Ah, there you go – that is the real question – and that is one that I will leave to Terry.
First, here’s a few “reasonable man” thoughts thrown in that might apply in your case:-
I have heard of that law – I suspect it applies where you might have bought another existing home and then took several months to move into it (for one reason or another).
In the case of a new home being built, there would be less likelihood of any problem as you cannot move into any new place until it is habitable, so if it takes more than 6 months to build, so be it. But, if you delayed moving into it once it is built, then there could be some extra things you need to know about CGT – and that is where Terry comes in.
Benny
You must be logged in to reply to this topic. If you don't have an account, you can register here.