Capital Gains Exemption : 6 or 12 ?

Brad,

This question has already been answered for you, my me and others in a previous thread; why are you asking EXACTLY the same question? Because the LAND was purchased with the intent to building your PPOR the ATO will require that either of you (in this case your ex-girlfriend) lives in the house for a min. of 3 months after it’s completion.

Go back and search through your archived posts and you will find it again.

ATO phone number – 13 28 61 (local call cost)

Cheers,

Jo

Brad,

Now I have done the search I might as well post the results for your and others benefit.

http://www.ato.gov.au/individuals/content.asp?doc=/content/43486.htm&page=16&pc=001/002/026/004&mnu=1051&mfp=001/002&st=&cy=1

Tells us at:

Is the dwelling your main residence?
The following factors may be relevant in working out whether a dwelling is your main residence:

the length of time you live there – there is no minimum time a person has to live in a home before it is considered to be their main residence whether your family lives there
whether you have moved your personal belongings into the home
the address to which your mail is delivered
your address on the electoral roll
the connection of services (for example, phone, gas or electricity)
your intention in occupying the dwelling.
A mere intention to construct or occupy a dwelling as your main residence – without actually doing so – is not sufficient to get the exemption.

In certain circumstances, you may choose to treat a dwelling as your main residence even though:

you no longer live in it (for more information, see Continuing main residence status after dwelling ceases to be your main residence), or
you are yet to live in it but will do so as soon as practicable after it is constructed, repaired or renovated and you will continue to live in it for at least three months (for more information, see Constructing, renovating or repairing a dwelling on land you already own).

That there is no set minimum period of time.

But Jo may have something more up to date on this one.

Cheers,

Simon Macks
Finance Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Apparently it has something to do with the LAND component of CGT exemption, and that if you buy the land with the intention of building your PPOR on it, it is recommended that you live in the building for a min. of 3 months. I will hunt down the reference for you.

Cheers,

Jo

Hi Simon,

I picked up the three month minimum issue in the piece you have copied into the thread which I think applies here given the house has been recently constructed.

“but will do so as soon as practicable after it is constructed, repaired or renovated and you will continue to live in it for at least three months”

I understand the no minimum clause relates to something that is already constructed.

But as per all matters tax there is a huge disclaimer – I am not an accountant but I did pass year 12 economics.[biggrin]

Derek
[email protected]

Property investment advice and researched property in quality locations available.

No problem Brad,

Sorry if I sounded somewhat sharp with you, it was not my intention; my desk looks like a war zone atm and hence I have 1001 things going on at one time.

Simon,

Thanks for tracking that, I knew it was on their website somewhere, but as I explained to Brad (above) I am flat out atm and all I could muster was a quick explanation (and a lagging one at that).

Cheers,

Jo