All Topics / Legal & Accounting / Capital Gains Tax

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    January 17, 2005 - 6:03 am

    Hi Guys,

    I am moving into my new house on April 1st and it will be my PPOR for 6 months while I do the gardens, decking, etc. I hope to sell the property as soon as possible after the 6 months to avoid paying Capital Gains and to cash in on my investment.

    Is it possible to put my house up for sale in July (3 months after moving in) and then if it sells, get a long settlement til October 1st to avoid paying capital gains tax ??? Hope this makes sense !

    Thanks heaps,

    Brad

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    January 17, 2005 - 6:10 am

    No, because CGT is calculated as from Contract of Sale date, not settlement date. By the way, CGT is applicable if you sell under 12 months, not 6.

    Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    January 17, 2005 - 6:27 am

    BUGGER !!!!! [angry2]

    Thanks heaps for the quick reply Monopoly [biggrin]

    Can anyone else confirm that it is 12 months and not 6 ? I am sure I have seen people in this forum say you must live in PPOR for 6 months before you are Capital Gains free ???

    Thanks !

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    January 17, 2005 - 6:29 am

    When did you buy it???

    Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    January 17, 2005 - 6:43 am

    I brought the block in January 04 and the house is at lock up stage at the moment. It is supposed to be finished by April this year. Me and my girlfriend of 5 years recently broke up (hence the need to sell asap and cash in on our profits !!!)

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612
    January 17, 2005 - 7:00 am

    As you purchased the land and were in the process of building your PPOR (and as long as you are not claiming another PPOR atm; that is you are renting) then you should be fine, and you can proceed with your plans as you outlined.

    Sorry to hear about your relationship break-up; never a nice thing to happen. [glum2]

    Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    January 17, 2005 - 9:14 am

    Thanks heaps Monopoly !

    You have put a big smile on my face !!! [biggrin]

Viewing 7 posts - 1 through 7 (of 7 total)

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