A mate of mine bought a house five years ago and has lived in it the whole time. He recently moved out and is renting with a mate and has started renting his house. He said he can rent it for 6 years and not attract capital gains tax. Is this true. the house is in nsw
yes.
As long as he doesn't own another home in the meantime.
At the end of 6 years he can resume living there then move out for a further 6 years.
Good eh…
He has owned another house for one year longer which he also rents out. OOps. Better tell him.
Just to clarify that a bit. What Simon was saying was yes, as long as your friend doesn't get another PPOR in the up to six year period. You can't declare 2 PPOR's at the same time. If he keeps renting, then no problem.
If his other property is an IP then this does not effect the situation.
I believe that if he buys himself another PPOR ,lets say after 4 years for example, then the calculation for CG for his original PPOR would start from that time so he would still win that extra 4 years CGT free.
An accountant would be able to verify all this for him.
Hope this helps
Elka
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