Hi All,
Thought I would run this past you.
To have the house you live in classified as your PPOR you need to live in it for 12 months before you can sell it. Correct?
Well, if I was to build a new house and the block settles in July 2003 and the house isnt completed (and occupied) until March 2004, at what date would the 12 months be up? July 2004 or March 2005?
If the tax office or whoever monitors capital gains tax payable on assets looks at the date the land settles as the start of occupancy then by rights I should be able to sell the house from July 2004 onwards. This way enabling me to build 2 houses in short periods of time and making double the profit (in theory anyway).
Perhaps a good idea in principal, but do you think it would work?
All feedback appreciated.
Many thanks,
Andrew.Hi,
To have the house you live in classified as your PPOR you need to live in it for 12 months before you can sell it. Correct?Not exactly. You can live in it for 2 or 3 months and then move on, but you would have had to have the intention of it being your PPOR. (You would have to get your mail delivered there. etc..)
Also if you do it too often the ATO will investigate.
See your accountant but as a rule of thumb don’t do it more than 2 times in a 3 year period.
APIM
*************
Australian Property SoftwareComing very very soon…
*************Hi “APIM”,
Thanks for that.
I was aware that theres a risk when ‘trading’ PPOR’s regularly – ie. buy, renovate and sell in a short period of time I would open myself up to possibility of being investigated but for some reason I had in my head that I needed to have the house for a minimum of 12 months regardless (to avoid CGT).
I’m pleased to hear that theres no set time limit as such, however obviously I would need to be very careful with what I do.
Once again thanks for the info. [
]Regards,
Andrew.
]The topic ‘Avoiding CGT on new homes’ is closed to new replies.
