I’ve recently been told by an accountant that a house u are part renting out,while living there, can be claimed as an I.P. during the time u are living there(of course),but that so long as you’ve been there a min. of 12mnths, if u sell it within the 6yr rule, there will be no CGT,as u claim it as your PPOR!?!? True/false?[confused2]
False Misty,
You will pay CGT but it will be apportioned accordingly because you were living there and claiming it partly as your PPOR. However, as with any home/PPOR, regardless of this fact, because the property is used to generate income, you will be taxed accordingly (hence CGT applies).
Jo
Hi Misty,
i have always thought that to be false. a 50/50 sort of thing but youve got me thinking now. i will ask around you do the same and we will then discover the truth
happy huntingGambini[cigar]
hey monopoly
are you still there
but you still can claim wear and tear and other things just not the full amountYes Gambini,
I’m still here, and yes, you can claim wear and tear (depreciation); I didn’t say you couldn’t. Misty ask whether CGT applied, and that is the only part I concentrated on.
Jo
I was of the understanding, that if you lived in your house and then rented it out, you could still claim it as your main house for up to 6 years and hence pay not CGT if you sell within this time.
But if you are renting out a portion of your house while living there, then when sold that portion will be subject to CGT – ie you cannot claim the 6 year rule on that portion.
But I may be wrong (again!).
Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.auTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Correct TerryW!!!
The fact that Misty is living it in will not attract a CGT, however the fact that she is renting out part of it does, therefore the 6 years exemption would not apply.
Cheers,
Jo
i never said you said you couldnt i just simply said
i see what your sayin[biggrin][cigar]
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