Thanks Mel.

Property A is worth around $150k more now than when we purchased so CGT could be painful on this property (depending over what period the CGT applies). FYI, this block is worth more without the house as it doesn’t suit the street-scape so would most likely be removed/demolished by the purchaser anyway (already been done in our street).

In regard to Property B, I’m thinking if we don’t use the six-month dual-PPoR rule, we would need to pay CGT on any change in value between the purchase date and the date we sell property A. However, if the ATO makes us factor in the house now on property B (costing $100k, increasing value by $150k) suddenly our should-be-PPoR profit on property B of $50k becomes at risk of being considered ‘income’ and therefore attract CGT.

This is still assuming we can contine to state property A as our PPoR after we move the house off it… (I have concerns here)

We’ve now booked in to see our Accountant on Friday, so hopefully she can provide some advice (although I’m thinking that I will need to find a property-savvy Accountant for more firm advice). I’ll post the results after the meeting.

Cheers,
Jason.