is this true???

Viewing 8 posts - 1 through 8 (of 8 total)

Misty1
Member
@misty1
Join Date: 2004
Post Count: 348
September 14, 2004 - 2:53 pm
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]
Monopoly
Member
@monopoly
Join Date: 2004
Post Count: 1,612
September 14, 2004 - 11:53 pm
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
Gambini
Member
@gambini
Join Date: 2004
Post Count: 42
September 14, 2004 - 11:56 pm
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 hunting
Gambini[cigar]
Gambini
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@gambini
Join Date: 2004
Post Count: 42
September 15, 2004 - 12:01 am
hey monopoly
are you still there
but you still can claim wear and tear and other things just not the full amount
Monopoly
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@monopoly
Join Date: 2004
Post Count: 1,612
September 15, 2004 - 12:07 am
Yes 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
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
September 15, 2004 - 3:07 am
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
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North Sydney
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Monopoly
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@monopoly
Join Date: 2004
Post Count: 1,612
September 15, 2004 - 3:35 am
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
Gambini
Member
@gambini
Join Date: 2004
Post Count: 42
September 15, 2004 - 4:27 am
i never said you said you couldnt i just simply said
i see what your sayin[biggrin]
[cigar]