my very first post(im a virgin so be gentle)
just relocated from wa to cairns,but we’ve retained our ppor in perth.can we still claim the normal deductions as a normal ip.
have 5 propertys in perth,kept them as i think the perth market still has legsmany thanks
steve[confused2]Hi Taffy,
Welcome aboard and congratultaioon on your achievements to date.
Any costs associated with your former ppor are now deductible and if you moved into the house without first renting it you also maintain/retain a CGT free period of up to six years.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
thanks for that quick reply derek.
just arrived in cairns 2 weeks ago so were researching like crazy looking for the next direction to take(what did people do before the internet!)[evo]On another note, if you maintain your PPOR in Perth, you could be eligible for LAFH. Do check with your accountant and you might have a pleasant surprise …
Hi Taffy,
Just a quick, but very important add on, you are only entitled to have one PPOR at a time and as such your Cairns plans and longer term do come into play.
A chat with a good accountant would be beneficial so you can determine what is your best course of action.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Taffy, being a fellow Welshman, it is always good to see “the little saucepan” being successful.
I think Terry is suggesting, in not so many words, that if you rent in Cairns for the next few years before settling on a new PPOR all of your cap gains in Perth are free. However, if you buy a place in Cairns to live in immediately, you would then have only 6 months as a changeover period to sell your Perth house before attracting the tax on the cap gains.
So if you intend to keep it and rent it our it would be a smart idea to get a valuation done immediately so any cap gains to date are not taxed when you eventually sell the property.
This means that from now until you sel it the tax is calculated, not your original purchase price. So if you have enjoyed $200k cap gains until now, that will be tax free. If the eventual correction takes place and you only make a further $50-100k before selling, thissafeguards the gains already recieved, with only that additional amount being liable for tax.
A big saving!!!!
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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