All Topics / Legal & Accounting / CGT implications?

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post Count: 211
    March 20, 2006 - 1:05 pm

    Hi all,

    We rent out a self-contained unit at the back of our PPOR.

    I gather that the PPOR exemption for CGT would no longer apply if we sold our place.

    But how can we work out approximately how much CGT we would be up for?

    And is there a way to avoid CGT (apart from the obvious, and not declare income – too late for that). For example, if we didn’t rent out the studio for a few years, and then sold our home – would that make any difference?

    Put another way – is there a certain number of years that you need to NOT be getting income from a PPOR to be able to once again be CGT exempt?

    thanks,
    Carlin

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    March 21, 2006 - 5:53 am

    Hi Carlin

    I am not an accountant, but htink GCT would apply on the basis of area rented out. ie what percentage is it of the whole property that you rent out. This would be the % of CGT you pay.

    But if you have only rented it out for a few years, not the whole time you were there, then you would have to reduce the CG accordingly.

    I don’t think the CGT liablity ever disappears.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.