My CGT Liability

Viewing 5 posts - 1 through 5 (of 5 total)

mkbonline
Participant
@mkbonline
Join Date: 2012
Post Count: 19
August 10, 2019 - 7:52 am
I purchased 2 bed townhouse as my PPOR in Dec 2010 for $320K in Toongabbie NSW. Lived their till Feb 2015 and then moved to overseas with a new job. I came back to Australia in Nov 2016 and was renting out in a different suburb till Dec 2018. I brought new place and move in Dec 2018. Old PPOR (Toongabbie) is rented out since April 2015 (more than 4 years now).Current estimated market price is $570K.
I want to sell it and invest money in offset account of new PPOR. .I have consulted few tax agents but getting conflicting advise regarding CGT liability.My question – Will I have CGT Liability if I sell old PPOR?
Cheers,
Manish
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 10, 2019 - 8:12 am
Not enough info, but possibly not as you have been absent for less than 6 years.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
mkbonline
Participant
@mkbonline
Join Date: 2012
Post Count: 19
August 11, 2019 - 2:47 pm
Thank Terry. My understanding was same i.e. You can still claim the the CGT free period for up to 6 years after moving out. But one tax agent advised me that since i have brought a new place of permanent residence in Dec 2018 – I will need to pay CGT on any growth in original property after I moved into the new place (Dec 18). Is that correct?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 11, 2019 - 3:07 pm
Not correct.
But is correct if you choose to use the main residence exemption on the new one.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Benny
Moderator
@benny
Join Date: 2002
Post Count: 1,416
August 12, 2019 - 7:45 am
Hi MKB,
Terryw had gone into quite some depth on this CGT subject previously – check out my post here:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/page/2/#post-5006553
Read on down and follow each link – especially the last two (in the PS area) where Terryw expands on the whole subject and provides a huge chunk of not-well-known info re CGT. Once you have done that, it should clarify a lot of things in your mind – then come back to this post to ask more questions re YOUR situation (in case it is different in some aspects).
Benny