hi guys
im sure youve answered this in previous posts, yet i couldnt find it having a quick search, so i’ll just ask..my parents currently own the home we live in , however we are currently building a new house, now we will be moving into the new house before we sell the existing one, because the existing house is then no longer their primary place of residence, the will be hit with capital gains tax i beleive?
what is the best way to get around this as they could lose near on 40-50g in cgt. would it be best to say maybe i move into the new house on paper, so their existing house would remain as primary place( even though they arent there) then move to the new house (on papoer) after it is sold?
or is there a better way around this?
they are selling the house then buying a nother house to rent out as investment, they dont want to rent the existing one as they have built it up and have emotional attachments to it, couldnt bear to see it trashed i guess…
thanks in advance for any feedback/ideas
The ATO allows you a certain period to sell the previous property. I’m not sure what that period is, probably about 6 months. Hence there should be no CGT involved.
thganks a lot guys….! [
]Hi youngie.
Also note that the CGT would only be payable on the amount of CG from when the house ceases to be a PPOR (including the six months grace period?), so if it took even longer to sell then there would only be a few months CG to calculate, almost certainly not 40-50K!
TerryTerence McMahon
HomeWin
Financethanks again guys,
i appreciate you time and knowledge….
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