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  • Profile photo of rabbit80rabbit80
    Member
    @rabbit80
    Join Date: 2009
    Post Count: 8
    August 31, 2010 - 10:50 am

    Dann,

    Just to clarrify, so if it take 3 years to build and I am paying CGT from the contract date, hence I own the property for more than a year and if i decide to sell it when completed , I will be able to claim 50%  discount in the CGT payment to the tax office.

    am I on the right track…

    Regards

    Profile photo of rabbit80rabbit80
    Member
    @rabbit80
    Join Date: 2009
    Post Count: 8
    August 27, 2010 - 12:40 pm

    Thanks guys ..

    its been a great help.

    This accountant was recommended by a colleague at work but I found him to be dud.. 

    Too late for this year.. So I will be looking for a new accountant next year.. :)

    I am moving into a rental property myself this weekend and will be renting my place out starting next week

    Ducster… I got a questions for you .. you said the following

    "The one PPOR at a time Rule.

    So if you buy another property you will pay CGT in one way or another.
    from the time you enter the contract to buy the new property and to the time when you sell the new property you will pay tax on the capital gain in the future for the new property if you deem property one to be your main dwelling (PPOR)

    PPOR – tax office likes to change terms they use it is called Main Dwelling CGT exemption now."

     

    I understand 1 PPOR at a time … That is not a problem..

    You specified above that the CGT is paid from the time you entered into a contract..  my understanding was CGT is paid from the time the house is settled and transfer in persons name..

    can you please clarify?

     

    I just bought an off the plan appartment as well and put a 10% deposit on it.. The construction of the house will not complete for another 3-4 year.. my plan is following.

    Rent myself till the new place is ready..

    Claim the old place as PPOR untill the new place is ready..

    Sell the old PPOR place within 3-6 months for claiming the appartment as my new PPOR.

    The benifit of doing this is that i will not be paying any CGT of the existing place and will be able to claim the new place (once ready) as my new PPOR.

     

    Is this a good approach?

     

    can someone please help and explain..

     

    Regards

     

     

     

     

    Profile photo of rabbit80rabbit80
    Member
    @rabbit80
    Join Date: 2009
    Post Count: 8
    August 4, 2010 - 1:01 pm

    Hello all,

    Thanks for the advice. I spoke to my solicitor, and was advice that nominee cause can be used for any purchaseand I am able to add my wife name to the contract anytime prior to the settlement of the property.(within 3 years).  There is minor cost of around few hundreds dollors..

    so I did signed the contact today.. so thanks again.

    Happy hunting
    <br /:)” title=”>:)” class=”bbcode_smiley” />

    Regards

    Profile photo of rabbit80rabbit80
    Member
    @rabbit80
    Join Date: 2009
    Post Count: 8
    August 2, 2009 - 10:52 am

    thanks richard..

    is it possible that as the new property is under construction i move additional funds (10K) from my redraw into the construction loan prior to the completion of the property… so by the time i rent the unit out it will have that amount owing on it.. and i can claim the interest on it..

    i understand the unit will be massively positive geared when i let it out…  but moving into the house as a PPR will be more advantageous for me as there will be massive capital gain on it compare to the single bed room unit in future…

    other thing should i get the unit valuated prior to me moving out of it.. so in future when i sell it .. i only pay the capital gain on the difference on what it is worth now and sell price in future…

    please advise….  any other would like to suggest a better option for me that would be nice..

    regards

Viewing 4 posts - 1 through 4 (of 4 total)