Forum Replies Created

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of midgomidgo
    Member
    @midgo
    Join Date: 2011
    Post Count: 3
    January 28, 2011 - 11:52 pm
    Dan42 wrote:
    The 6 year rule doesn't apply, as you have bought another PPOR.

    You can, however, elect to call your first PPOR, your PPOR for the entire time you owned it.

    If you do this though, your current home will be subject to CGT when you sell, for the period from when you bought it, to when yousell the first PPOR.

    It's your choice as to whether you want to pay a small amount of CGT now, or an amount later on when you sell the current PPOR.

    I am confused by you saying the 6 year rule does not apply in my case?

    I am further confused by the PPR rule after reading this

    http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htm

    Especially these sentences in the above ato page.

    Quote:

    you make the choice for the year you enter into the contract to sell the first of those dwellings.

    If you make this choice, you cannot treat any other dwelling as your main residence for that period (except for a limited time if you are changing main residences).

    Any help clarifying this would be appreciated.

    Profile photo of midgomidgo
    Member
    @midgo
    Join Date: 2011
    Post Count: 3
    January 28, 2011 - 1:43 am
    Quote:
    From what you have written you could probably claim the CGT exemption on the sale of the old house. But your new home will not be CGT exempt during this period.

    There is no nomination needed. you just don't include it in your tax return. Check with your accountant.

    Thanks for the reply Terry.

    By our new home not being exempt, do you mean during the current tax year ie 2011 that we claim our old home as our PPR?

    After selling the old home and claiming CGT exemption for year 2011.

    We should be able to claim exemption for our new home later if we rent it out and buy another home down the track say in a cuople of years or so, is that the case?

    Profile photo of midgomidgo
    Member
    @midgo
    Join Date: 2011
    Post Count: 3
    January 28, 2011 - 1:19 am

    Hello

    We lived in our old home for 22 years from 1986 to 2008.

    We moved into our new home then and it is now our PPR.

    Our old home is now rented out and is income earning.

    If we sell our old home some time this year 2011 will we have to pay any CGT or are we exempt under the 6 year rule.

    As we have nominated our new home as our PPR and all our records now indicate this are we still able to use the 6 year rule for our old home?

    If so how do you nominate the old home as your PPR if you live in another home which has already been nominated as your current PPR for 2 years?

    Any information appreciated.

Viewing 3 posts - 1 through 3 (of 3 total)