Hi everyone ,
Just on the PPOR and CGT stuff , how does this senario stack up ….. i have three properties and i need to sort out the “structure” of. One i have lived in for 10 years , which i want to keep and rent. The second i bought more than 12 months ago with the view of renting. I have nearly finished renovating this one and due to a massive CG i am thinking of cashing in to finance more IP’s. And the 3rd i have just settled on which will be my new PPOR . I changed all my addresses over to the second, knowing the third would be rented. I have also been using the second to live in while i re do the kitchen and bathroom in the first ……Do you think the ATO would accept a claim of the 2nd being my PPOR (and hence CGT free) given that i haven’t rented it or claimed it as an IP …..????
The second i bought more than 12 months ago with the view of renting. I have nearly finished renovating this one and due to a massive CG i am thinking of cashing in to finance more IP’s.
Rabbit, I’m guessing you lived in this one while renoing? If you lived in it, you can definitely sell it CGT exempt. If you sell it within 6 months of settling on the new place which is going to be PPOR you can have an overlap – ie have both properties count as PPOR for those 6 months.
If it takes longer than 6 months, you have to apportion your new one – ie 3 months as not the PPOR, versus 2 years 9 months living in it. Then 1/12 of any gain on sale would be subject to CGT. Ask your accountant.[]
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