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  • pvasi
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    @pvasi
    Join Date: 2013
    Post Count: 7
    March 12, 2013 - 1:10 pm

    Hi Derek
    I found this article about CGT tax when renting your old PPOR residence, that I would share.

    The tax rules now state that you have a period of 6 years to be away from your property, and renting it out, before you have to start paying Capital Gains Tax.  Whilst this sounds like a great idea, there are a few restrictions to that you need to carefully consider:

    the property must have been your primary place of residence
    there is no minimum amount of time that you had to live at that property, however it must have been a bona fide home
    you can stay away from your primary place of residence and rent out that property for a maximum period of 6 years
    you cannot claim a CGT exemption on another property over that period of time
    There has been some debate about whether you need to move back into the property prior to selling it such that you’re living in it again at the time of the sale, however this is not the case.  The ATO will recognise the fact that
    the property used to be your home and will treat it accordingly.

    It seems though we have 6 yrs before CGT applies on our home when it is rented.

    Thx Peter

    pvasi
    Participant
    @pvasi
    Join Date: 2013
    Post Count: 7
    March 12, 2013 - 12:41 pm

    Hi Adrian,
    Thanks for that, my only concern with that is when you sell you have real estate fees plus stamp duty fees when you are buying again and a whole lot of other associated fees.
    I would think maybe purchasing another property with a positive cash-flow.
    Not sure if that’s the way to move forward. Just keeping my options open at the moment.

    Cheers Peter

    pvasi
    Participant
    @pvasi
    Join Date: 2013
    Post Count: 7
    March 11, 2013 - 8:45 am

    Thanks Derek
    I will give Claire a call. I live in Harvey about 30 minutes north of Bunbury .
    Thx peter

    pvasi
    Participant
    @pvasi
    Join Date: 2013
    Post Count: 7
    March 11, 2013 - 6:42 am

    Thanks Derek
    Can u recommend a depreciation company and
    Is CGT witheld if you sell before 6 yrs. Our home is about 10 yrs old.

    Cheers

    pvasi
    Participant
    @pvasi
    Join Date: 2013
    Post Count: 7
    March 11, 2013 - 6:03 am

    Hi Derek
    Thanks for that.Yes we have bought again in the same town. Rental demand is very high in our area , we live 1 1/2 hrs fom Perth.
    I was ble to put a deposit of 120 on our new home and paid 440 for it. I think most of the rental should cover the repayments just not sure of the tax implications s at tax time as this wll increase my annual income. Wasn’t to keen on selling it off for a couple of reasons but one was agents fee I would have had to pay between 10 to 15 grand on top of stamp duty for the house just purchAsed.
    We are interviewing a few people this week for our rental we are advertising for 420 a week byt we had one family offer us 450!

    Cheers Peter

    pvasi
    Participant
    @pvasi
    Join Date: 2013
    Post Count: 7
    March 11, 2013 - 1:18 am

    I’m in the south west of WA.

Viewing 6 posts - 1 through 6 (of 6 total)