Forum Replies Created
quote:
Hello Shelly,I hope I have understood correctly, but if you are just selling the first property,(which is your PPOR/primary place of residence), then no capital gains tax is payable. This is in existence as that property was not used to create income.
Hope that hit the nail on the head.
Thankyou for your reply but no I meant that we are currently living in a house and have an investment property. If we were to sell our own property to the reside in the investment property and put say $100K into the mortgage,thus meaning we would go from it once being a negative geared investment property to now becoming our principle place of residence, when and how much tax would have to be paid. Do you not pay any tax at all until a sale eventually if we were to move from it. We assume by us living in it for some time we are also cutting down the amount of CGT to be paid in the future. Many thanks
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.auquote:
I dont think you have to pay any CGT until you actually sold the property you are moving into and the amount of cgt depends on how many years the house was rented out…So do you mean that if we sell our principal place of residence for say $350K then decide to reside in the now rented property and put about $100K into it then no cap gains tax would be not be paid until we then decided to sell. Now if we do it the other way and stay in our principle place of residence and sell the investment property how is the cgt calculated. If we bought it for $170 and sold for $250 and have only had it 12 months so far, how do I calculate the cgt tax. Many thanks for your reply
