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Is it possible to reset the cost base by moving out and renting the dwelling during the DA process? I hope to be lodging in a matter of weeks.
ie When I asked if it was possible to rent the property out again to reset the cost base to today's value. But was told.
* There is no possibilityy of “resetting” the cost base as the 6 year rule prevents the “Home first used to produce income” rule being invoked. Basically if you rent the property out it is still classified as your main residence under the 6 year rule and therefore the cost base remains your purchase price.Why can't i elect to say that it was my PPoR until now. Get it valued to reset the cost base and then rent out until the DA is approved?
Scott No Mates wrote:You'd be best advised to check your numbers Phil, paying cgt is part & parcel of the development and gst is payable as you have 'created' a new lot. Remember that you may also get some input credits for gst and you could also investigate building the new house & a quick reno on the old one to sell it off, possibly keeping the cgt exemption on the old house until you move into the new one? Then the remaining (new) property will be your PPOR.Thanks for your reply Scott. The current house straddles what would be the new boundary. It is also too wide to allow a house next to it (ie both facing the street).
As for the numbers, yeah, i came up with a set of my own and then the property tax accountant did the same. Our numbers were similar. But, she had never come across this scenario before. Which is why i'm asking on here!
